Besides, covering-up of short positions in view of an approaching January expiry in the derivatives segment on Thursday influenced mood.
The 30-share index rose 159.47 points, or 0.65 per cent, to 24,595.13, with all sectoral indices led by auto, healthcare, capital goods, metal and banking trading higher by up to 1.12 per cent.
The gauge had rallied 473.45 points in the previous session.
The NSE index Nifty too edged higher by 60.40 points, or 0.81 per cent, to 7,482.85.
Brokers said investors speculated over the possibility that central banks will unleash more stimulus measures to bolster financial markets, which led to a firm trend at other Asian markets, lifting spirits here.
Stock markets will remain closed tomorrow for the Republic Day.
Among other Asian markets, Hong Kong’s Hang Seng was up 2.47 per cent and Japan’s Nikkei gained 0.67 per cent while the Shanghai Composite index was trading higher 0.60 per cent in early trade today.
The US Dow Jones Industrial Average ended 1.33 per cent higher in Friday’s trade.
PTI