New Delhi - Indian equities soared over 5 per cent on Friday tailing positive cues from global markets after rate cuts in the United States and Japan.

The 30-share Sensex of the Bombay Stock Exchange was trading at 9,651.12 around noon, about 6.71 per cent above its previous close.

The broader 50-share Nifty of the National Stock Exchange also showed strong positive signals, trading 5.35 per cent up at 2,841.30.

Indian share markets opened Friday after being closed the previous day for a festival holiday.

Analysts said the rally was sparked by rises on the global markets after the central banks of the United States and Japan cut interest rates and hopes that the Reserve Bank of India would follow.

Good news on the inflation front also buoyed shares. The government said inflation had eased to a four-month low of 10.68 per cent in the week ending October 18, compared with to 11.07 per cent a week earlier.

Asked about fears of a global recession affecting India, Finance Minister P Chidambaram said India would still witness 7 per cent economic growth and continue to create jobs. The country has seen a 9-per-cent gross domestic product growth in the past three years.

"Growth at 9 per cent would signal rapid creation of jobs. Growth at a lower rate does not imply a destructive employment situation," the finance minister was quoted as saying by IANS news agency.

Buying was strong across almost all sectors on Friday with information technology, oil, gas and metal stocks among the major gainers. (dpa)