New Delhi - India's benchmark Sensex index rose by 4 per cent during trade Friday, mirroring strong gains on the US and Asian bourses.

The 30-share sensitive Sensex index of the Bombay Stock Exchange, which rose 2.25 per cent on Thursday, moved up further by 3.95 per cent to 8,671.36 points by 1:25 pm (0755 GMT).

All the 13 sectoral indices on the BSE were in positive terrain with the indices for banking and realty gaining the most.

Indian markets surged during the opening hours due to overnight gains in the US and a strong opening of the Asian equity markets.

Realty and banking stocks were leading the upmove after gaining more than 3% each.

The BSE midcap index was ruling 1.78 per cent higher, while the BSE smallcap index was up 1.04 per cent.

The Bombay Stock Exchange's Sensex opened at 8,480.74, up 136.99 points or 1.64 per cent from the previous day's close.

Sydney - Australian stocks soared 3 per cent

Tokyo - Tokyo stocks rose again on Friday, buoyed by another surge on Wall Street on the New York markets.

The benchmark Nikkei 225 Stock Average gained 316.93 points or 4.4 per cent by 9:46 am, at 7,515.18.

The broader Topix index of all first section issues was also up by 17.61 points or 2.51 per cent, at 718.54.

Wall Street continued its three-day rally with the three major indices up about 4 per cent on Thursday led by General Electric and Bank of America shares.

New York  - Wall Street continued its three-day rally with the three major indices up about 4 per cent on Thursday led by General Electric and Bank of America shares.

General Electric gained 13 per cent to 9.57 dollars per share after it said a cut in its credit rating was unlikely to impact business, and Bank of America picked up 19 per cent to 5.85 dollars.

"Those banks have been beaten down to almost nothing - same goes for GE - so any kind of good news would allow for a bounce," investment strategist Bruce Bittles told Bloomberg financial news.

Despite weak opening of European markets, Indian equities extended their gains this afternoon, with a key index ruling about 2.60 per cent higher than its previous close an hour before the closing bell.

However, inflation and IIP figures backed the market reaction.

Industrial production slipped by 0.5% in January 2009 despite stimulus packages declared by the administration to defend against the impact of worldwide slump.

This is the third time repeatedly where IIP contracted during this fiscal.