The Indian equity markets posted notable gains early on Friday driven by gains in IT stocks and positive data on the domestic economy.

Sensex added 515 points, or 0.68 per cent, in early trade to reach 76,668 and Nifty gained 51 points, or 0.22 per cent to reach 23,925.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 added 0.03 per cent, and the Nifty Smallcap 100 gained 0.49 per cent.

Sectoral indices on NSE traded mixed with Nifty consumer durables posting the highest losses, down 0.50 per cent. Nifty IT was the top gainer, up 0.65 per cent, followed by realty, up 0.50 per cent.

"Rising bond yields are negative for equity markets. The US 10-year yield continues to hover around 4.8 percent. In Japan the 10-year yield is at a 30-year high of 3 per cent. In the UK, the 30-year yield is at 6 per cent. In India, too, the 10-year yield is close to 7 per cent," an analyst said.

"However, these negative factors are being countered by the positive news about the Indian economy. Particularly impressive are the ongoing high frequency data regarding GST collections, automobile sales and credit growth," the market expert added.

Brent crude remains elevated near $96–97, keeping geopolitical risks around the US–Iran conflict a key factor for market sentiment.

"Global sentiment has improved as Wall Street closed higher and Asian markets are largely positive, while US Treasury yields have eased," an analyst said.

The immediate support for Nifty is placed at 23,800–23,850 zone, while resistance is seen at 24,050–24,100.

Immediate support is placed at 57,000–57,200 for Bank Nifty, while resistance is seen at 57,800–58,000, a market participant said.

In Asian markets, China's Shanghai index gained 0.35 per cent, and Shenzhen added 0.27 per cent, Japan's Nikkei added 1.14 per cent, and Hong Kong's Hang Seng Index added 2.09 per cent. South Korea's Kospi added 1.31 per cent.

The US markets ended in green overnight as Nasdaq gained 1.4 per cent. The S&P 500 added 1.06 per cent, and the Dow Jones advanced 1.18 per cent.

On September 3, foreign institutional investors (FIIs) net sold equities worth Rs 2,346 crore, while domestic institutional investors (DIIs) bought equities worth Rs 4,977 crore.