The Sensex recovered by about 290 points, while the Nifty retook the 10,800-mark on robust buying in metal, banking, capital goods and energy stocks. A firm trend at other Asian markets and positive opening of European shares, tracking overnight gains at the Wall Street, also bolstered sentiments, brokers said. The BSE Sensex stayed in the positive terrain throughout the session and hit a high of 35,596.15 before finishing at 35,535.79-a rise of 289.52 points, or 0.82 per cent.
The broader NSE Nifty scaled a high of 10,812.05 before closing 89.95 points, or 0.84 per cent, higher at 10,806.50.
On a weekly basis, the Sensex gained 620.41 points, or 1.78 per cent, while the Nifty advanced 188.25 points, or 1.77 per cent.
Top Sensex gainers were Asian Paints (6.17%), Tata Steel (2.17%) and Larsen and Toubro (1.69%) .
Bharti Airtel (6.44%) and Sun Pharma (5.05%) were the top Sensex losers.
Market breadth was negative with 1108 stocks closing higher against 1555 ending lower on BSE. 142 stocks were unchanged.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 900.69 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 364.88 crore yesterday, as per provisional data.
On Thursday, the Sensex closed 73.08 points, or 0.21 per cent lower at 35,246.27. The broader NSE Nifty closed 25.15 points, or 0.23 per cent down at 10,716.55.
Global markets
Most Asian stock indexes rallied on Friday, tracing gains on Wall Street after weaker than expected inflation figures soothed concerns about a possible acceleration of interest rate hikes. European stocks faltered ahead of a speech by the European Central Bank chief.
European shares were mostly lower in early trading. France's CAC 40 lost 0.3 percent to 5,530.22 and Germany's DAX dipped 0.3 percent to 12,988.69. Britain's FTSE 100 was nearly flat at 7,702.66. Wall Street was poised to open higher. Dow futures gained 0.1 percent to 24,723.00 and broader S&P 500 futures added 0.1 percent to 2,721.00.