BENGALURU, Feb 2 (Reuters) - Indian shares advanced on Friday, buoyed by government's adherence to fiscal prudence in its interim budget, while digital payments firm Paytm continued to tumble after the central bank's clampdown on its payments bank associate.

The NSE Nifty 50 index rose 1.10% at 21,935.20, as of 10:27 a.m IST, and the S&P BSE Sensex was up 1.08% to 72,419.65.

The broader and more domesically-focussed small- and mid-caps added 1.4% and 0.8%, respectively.

Long-term equity investors will take Indian government's fiscal consolidation commitment positively as it bolsters macroeconomic stability, said Navneet Munot, managing director and chief executive of HDFC Asset Management.

The government in its interim budget on Thursday set a target to narrow its fiscal deficit to 5.1% in fiscal 2025 and reduce its borrowings.

Forty-six of Nifty 50 stocks and all 13 major sectors logged gains.

Energy and oil and gas indexes jumped 2%, both led by a 2% rise in Reliance Industries .

Other high-weightage stocks like ICICI Bank, Tata Consultancy Services and Infosys gained between 1.6% and 2.1%, while HDFC Bank added 0.5%.

However, One 97 Communications tumbled another 20% on Friday following a 20% fall in the previous session, and was at the exchange-mandated lower limit for the second consecutive day.

The slump comes after Reserve Bank of India ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or digital wallets from March.

Adani Ports and Special Economic Zone rose 5% and was the top Nifty 50 gainer, after it


a 68% year-on-year profit growth in December quarter.

Asian markets advanced, tracking overnight gains in Wall Street. Investors await U.S. non-farm payroll report for January, due after Indian market hours on Friday.

The data will be crucial in guiding the Federal Reserve's timing for the start of its rate easing cycle. (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil, Sonia Cheema and Varun H K)