Mumbai: The benchmark BSE Sensex rallied over 350 points to 26,582.13 in early trade Friday on continued buying by investors as the September series in the derivatives segment began on a strong note.

The Nifty of National of Stock Exchange regained the 8,000-mark by rising 113 points.

The 30-share Sensex, which had gained 516.53 points in yesterday's session, rose further by 350.94 points or 1.33 percent to 26,582.13 points.

Led by realty, metal, IT and oil & gas, all the sectoral indices of BSE were in the positive zone.

The NSE Nifty reclaimed 8,000-mark by climbing 113.00 points, or 1.42 percent at 8,061.95.

Brokers said widening of positions by participants, following beginning of the September month F&O series and a firming trend at other Asian markets following overnight gains on the U.S. markets after strong economic data, buoyed trading sentiments.

Besides, sustained buying by domestic financial institutions also supported the rally, they said.

Among other Asian markets, Japan's Nikkei gained 2.77 percent, Shanghai Composite index rose 2.17 percent, while Hong Kong's Hang Seng was up 1.66 percent in early trade.

The U.S. Dow Jones Industrial Average ended 2.27 percent higher in yesterday's trade.