Benchmark indices surged in trade, as the rupee recovered and was trading higher by 32 paise at 73.79 to the dollar. The currency had closed at 74.12 to the dollar on Thursday.
Global cues were also strong with recovery seen in global markets across Asia. Dow Futures were also pointing to higher openings.
The Sensex was last seen trading with gains of 722 points, while the Nifty was up 226 points in trade. Auto stocks were leading the set of gainers with Mahindra and Mahindra and Maruti among the top gainers. Both these stocks have been hammered in the recent past.
Heavyweights, ITC and Reliance Industries also supported the markets. IT stocks came under some selling pressure, following strength in the rupee. Shares of Tata Motors was up 2 per cent, after moving between gains and losses.
Infosys, Wipro and TCS were among the shares that lost ground in trade.