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India's benchmark indexes rose for the second session in a row on Friday, led by a jump in auto and IT stocks, while Macrotech Developers' robust sales boosted the realty sector.

The blue-chip NSE Nifty 50 rose 0.12% to 21,684.80 points, while the S&P BSE Sensex added 0.13% to 71,933, as of 10:58 a.m. IST.

After hitting record highs on Monday, the Nifty succumbed to selling pressure for the next two sessions. But, strong quarterly updates by key lenders and financial companies on Thursday helped the index regain some ground.

"There has been some nervousness at the start of the New Year as valuations seem stretched in pockets," said Jaykrishna Gandhi, head of business development of institutional equities at Emkay Global Financial Services.

However, strong macroeconomic fundamentals and steady earnings outlook are expected to support the domestic market rally, added Gandhi, referring to the Reserve Bank of India's (RBI) fiscal 2024 growth upgrade, stable inflation and strong credit growth.

The IT index advanced 1%, recovering from a sharp slide earlier in the week. Despite the rise so far, IT stocks are down 2.2% for the week, as Federal Reserve policy minutes and fresh labour market data in the U.S. dampened expectations of early U.S. rate cuts in 2024.

Auto stocks added 0.5%, rebounding from a fall earlier in the week after mixed monthly sales data and tax demands for companies including Eicher Motors, Mahindra & Mahindra.

Realty stocks extended gains to a third session, adding 0.75%, on strong quarterly updates by key constituents like Macrotech Developers, Sobha and Oberoi Realty and robust sales outlook for the sector.

The more domestically-focussed small- and mid-caps gained about 0.2% each. Despite the rise, analysts remained cautious on the segments, citing elevated valuations.