The gauge had lost 73.28 points in the previous session.
The BSE 30-share barometer opened higher at 35,144.96 and advanced to 35,206.55 in morning trade on value-buying in recently battered stocks. It shuttled between 10,700.45 and 10,601.60 during the session.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,628.23 crore, while the domestic institutional investors purchased stocks worth Rs 1,084.09 crore.
With growth in new orders and easing inflationary pressures also helping in improved demand conditions, the Nikkei India Services Business Activity Index climbed to 51.4 in April from 50.3 in March.
On the other hand, Tata Steel (3.30%), I C I C I Bank (2.58%), Hindustan Unilever (2.49%), Sun Pharmaceutical Industries (2.39%), State Bank Of India (2.29%), and Hero Motocorp (1.91%) were the major losers in the Sensex.
Top gainers included Adani Ports, HUL, HDFC Bank, Powergrid, IndusInd Bank and ICICI Bank, with gains as much as 2.87%. Another private sector bank, Axis Bank, rose 1.5 per cent. HDFC and HDFC Bank rose over 1 per cent.
Consumer durables rose by 1.19 per cent. There was hectic selling in the mid- and small-cap segment.
Overseas, investors were cautious after a largely weak performance on Wall Street overnight as some disappointing earnings reports offset strong economic data, while bond yields slid after a surprising slowdown in euro zone inflation.
PC Jeweller extended rally, rising 44 percent on top of 10 percent upside in previous session after the managing director, Balram Garg yesterday denied investigation by SEBI and CBI.
In other Asian markets, Hong Kong's Hang Seng shed 0.74 percent while Shanghai Composite Index lost 0.26 percent in early trade on Friday.
In the Eurozone, Paris CAC 40 fell 0.21 per cent while Frankfurts DAX was higher by 0.25 per cent in early deals.