(RTTNews) - Firm global cues on the back of encouraging data on U.S. jobless claims and sales gains reported by a handful of U.S. retailers lifted the Indian market sharply higher for a second straight session Friday.

An upbeat assessment of the global economy by the IMF and interest rate increases by some Asian countries in recent days, including India, also boosted confidence about global economic recovery.

Telecom giant Bharti Airtel climbed almost 10% on a brokerage upgrade. Other telecom stocks such as Reliance Communication (up 2.82%), Idea Cellular (up 13.31%) and Tata Teleservices (up 5.54%) also rallied with a significant increase in trading volumes.

IT bellwether Infosys, which is set to unveil its first-quarter earnings on July 13, rose 1.63% and Wipro gained 1%, while TCS slipped 0.27%.

In the metal pack, Tata Steel advanced 2.43% on reports it may hike product prices. SAIL, Hindustan Zinc, Jindal Steel, Sterlite Industries and Hindalco rose by 1%-2.5% even as base metal prices remained choppy.

Sugar stocks saw widespread buying as agriculture minister Sharad Pawar talked about sugar decontrol. Bajaj Hindusthan, Balrampur Chini, Dhampur, Shree Renuka, Oudh and Dwarikesh soared between 3% and 12%.

The benchmark 30-share BSE Sensex ended up 182 points or 1.03% at 17,834 and the 50-share Nifty rose by 56 points or 1.05% to 5,352. Second-line stocks posted modest gains and in the broader market, gainers outpaced decliners by 1575 to 1323 shares.

State-run lender Vijaya Bank rallied 3.57% on reports that it is seeing an improvement in net interest margins. Other PSU banks like UCO Bank gained 1.83%, Bank of Maharashtra rose 1.55%, Andhra Bank added a little over a percent and SBI edged up 0.51%. Private sector lender ICICI Bank, which said it raised $500 million via a bonds issue in the international market, rose 1.09% and HDFC Bank rallied 3%. Mortgage lender HDFC closed up 1.09%.

In the healthcare sector, Pfizer India eased 0.54% amid reports that it has launched a new variant of its pneumonia vaccine in the Indian market. Cadila Healthcare lost about half a percent after Irish pharma firm Shire Plc filed a patent infringement suit against the Indian generic drug maker. Cipla slipped 0.28% on reports that its chief executive officer Amar Lulla may step down next year. However, the company clarified that the contents of the report are speculative.

State-run BHEL edged up marginally, while NTPC shed 0.68% on allegations that officials from the companies have accepted bribes from a U.S.-based company. Power trader PTC India climbed 5.77% on reports it is selling a stake in its financial services arm.

Auto components maker Steel Strips Wheels soared nearly 10% after it received an export order from German car maker Audi. Cement makers such as ACC, JK Lakshmi and Ambuja Cement closed in the red, while India Cements rose 3%, Madras Cement edged up 0.75%, Binani advanced 2.41% and Shree Cement rose 1.88%.

Two-wheeler manufacturer Bajaj Auto edged up 0.65% after it signed a pact with the Renault-Nissan Alliance to develop a low-cost car. Met coke producer Gujarat NRE Coke advanced 3.19% after it posted a more than five-fold rise in first-quarter net profit.

Petronet LNG rallied 4.27% on a brokerage upgrade. HCL Infosystems gained 1.59% after it bought a 60% stake in a Dubai-based IT services company. Zenith Computers closed up 2.51% after denying media reports that it is selling its computer business. Hindustan Dorr-Oliver jumped 3% after its U.K. subsidiary bagged a ?8.3 million order.

Defensive FMCG stocks closed on a subdued note. United Spirits, Godrej Consumer Products, Colgate Palmolive, ITC, Hindustan Unilever and Nestle India fell by 0.11%-2.10%.

Chowgule Steamships declined 0.50% on posting a loss in the first quarter. Phillips Carbon Black fell 1.65% and Alstom Projects India eased 0.21% on turning ex-dividend.

Elsewhere, Asian stocks rose for a second consecutive session today, lifting the MSCI Asia Pacific Index up by about a percent to its highest level since June 24. European stocks were modestly higher in early trading, extending their rally for a fourth consecutive session, while the U.S. index futures pointed towards a lower opening on Wall Street Friday following three sessions of consecutive gains.