Indian equity benchmarks finished Friday's session with half of their intraday gains in a broad-based jump, tracking a spike across global markets following a short covering-led surge on Wall Street even as red-hot inflation in the US cemented fears of steep rate hikes hampering economic growth.

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Investors awaited more of corporate earnings from India Inc for cues, after IT majors TCS, Infosys, Wipro and HCL Tech reported their quarterly numbers this week.

Both Sensex and Nifty50 jumped as much as two percent during the session. The 30-scrip index rose 1,199.9 points to touch 58,435.1 at the strongest level of the day, and the Nifty soared to as high as 17,348.6, up 334.2 points from its previous close.

A total of 30 stocks in the Nifty50 basket ended with gains. Infosys, the HDFC twins, HCL Tech and UPL were the top gainers.

HCL Tech, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and Divi's — rising around 1-2 percent each — were some of the other blue-chip stocks that rose the most.

Infosys, HDFC Bank, ICICI Bank and Reliance were the top boosts for both main indices.

On the other hand, ONGC, JSW Steel, Mahindra & Mahindra, Bajaj Auto, Adani Enterprises, Asian Paints and Hindalco — declining around 1-2 percent for the day — were the top laggards.

Sharp gains in financial and IT shares pushed the headline indices higher.

"Initially the US market fell because the US inflation reading exceeded the forecast, but recovered quickly due to the oversold state of the market... The rally in the domestic market can continue in the short term led by festive demand, quarterly results and the positive global market trend," said Vinod Nair, Head of Research at Geojit Financial Services.

ALSO READ: A spectacular rally on Wall Street despite red-hot inflation — can global markets sustain momentum?

Overall market breadth turned neutral in the second half of the day after being in favour of the bulls initially, as 1,743 stocks rose and 1,711 fell at the close on BSE.

The rupee closed nearly unchanged at 82.35 against the US dollar.

Global markets

European shares climbed on Friday, mirroring gains across Asia following a short covering-led handover from the US, as hopes grew of a U-turn in some fiscal steps announced by the UK government with investors also snapping up beaten-down stocks. The pan-European Stoxx 600 index jumped as much as 1.8 percent to a one-week high.

S&P 500 futures were up 0.3 percent, suggesting a positive start ahead on Wall Street.

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