The benchmark BSE Sensex rebounded over 96 points to 25,706.87 in early trade today, reversing its two-day losing trend on the back of positive IIP numbers for July.
Besides, a firming trend at other Asian markets buoyed sentiment.
The 30-share barometer recovered 96.66 points, or 0.38 per cent, to 25,706.87, with stocks of realty, power, capital goods and PSU sectors leading the recovery.
The gauge had lost 109.37 points in the previous two straight sessions.
The NSE index Nifty recaptured the 7,800-level by recovering 21.80 points, or 0.27 per cent, at 7,811.10.
Brokers said buying activity picked up on positive economic data as industrial production expanded at better-than-estimated 4.2 per cent in July this year compared to the same month last year as manufacturing activity and offtake of capital goods improved.
Among other Asian markets, Hong Kong's Hang Seng was up 0.81 per cent while Japan's Nikkei was trading 0.42 per cent higher in early trade. China's Shanghai Composite index rose 0.65 per cent.
The US Dow Jones Industrial Average had closed 0.63 per cent higher on Friday.