Sensex up 500 points; RIL, ONGC rise on gas price hike

MUMBAI (Reuters) - The BSE Sensex rose more than 2.5 percent as energy firms such as Oil and Natural Gas Corp and Reliance Industries rallied after the government approved a hefty increase in gas prices.

Sentiment was also boosted as the rupee gained on Friday, further retreating from a record low hit on Wednesday.

ONGC shares were up 3 percent at 2:51 p.m., while Reliance was up 3.6 percent.

The BSE Sensex and Nifty were up more than 2.5 percent each.

(Reporting by Rafael Nam; Editing by Sunil Nair)