Markets on Friday snapped a three-day losing run with Sensex rising 65 points to reclaim 27,000-mark and Nifty gaining 20 points to end above 8,100-level on buying in select bluechips ahead of IIP and retail inflation data.
Both benchmark indices also logged their fifth straight weekly rise - one of the longest string of wins in 12 months.
Traders said activity was choppy as some participants exercised caution ahead of macroeconomic data releases. Mixed global cues also capped gains, they added.
Select pharma, consumer durable, auto and FMCG stocks were in demand while power, capital goods, realty and metal shares attracted profit-booking.
Smart rise mainly in ITC, Cipla, HDFC and Maruti Suzuki shares aided the rebound. Laggards included Hindalco, Sun Pharma, RIL, NTPC, L and T, Infosys, ICICI Bank and Coal India.
The 30-share BSE Sensex moved in 131-point range, before settling above 27K-level at 27,061.04 - a rise of 65.17 points or 0.24%. In previous three days, it had fallen by 323.98 points or 1.19%. On a weekly basis, Sensex logged its fifth straight rise as it inched up 34.30 points.
The wide-based 50-issue CNX Nifty of the NSE also recovered by 19.80 points, or 0.24%, to regain 8,100-mark as it closed at 8,105.50. It had shed over 88 points in previous three days. On a weekly basis, Nifty also logged its fifth straight rise as it inched up 19 points.
The government is scheduled to release Industrial Production (IIP) data for July and inflation based on consumer price index (CPI) for August 2014 after market hours later on Friday.
"We shall be seeing participants reacting to macro-economic data on opening note on Monday and that would set the tone for rest of the day," said Jayant Manglik, president - retail distribution, Religare Securities.
Meanwhile, Snowman Logistics made a stellar market debut on the NSE with shares surging nearly 70%.
Globally, investors are eyeing outcome of next week's Federal Open Market Committee (FOMC) meet on key interest rates for further guidance. Fears of rate hikes have dented sentiment in emerging markets like India.
Meanwhile, Foreign Portfolio Investors bought shares worth net Rs 433.55 crore on Thursday, as per provisional data.
Asian stocks closed mixed after the latest data showed credit growth of Chinese financial institutions surged last month. Indices from China, Japan and South Korea ended firm while those from Hong Kong, Singapore and Taiwan ended weak.
European markets reversed initial gains and were trading lower in late morning deals. The CAC (France) was down by 0.28% and the DAX (Germany) by 0.29%. However, the FTSE (UK) was up 0.05%.
In domestic market, major Sensex gainers included Cipla (6.38%), Maruti Suzuki (1.87%), Bharti Airtel (1.85%), ITC (1.40%), Sesa Sterlite (1.36%), Hero MotoCorp (1.33%), HDFC (1.09%), SBI (0.93%) and M&M (0.85%).
Jignesh Chaudhary, head of research, Veracity Broking Services said: "Local equities added quarter of a per cent on Friday. To start the day, local equities opened slightly low but as the day progressed, indices closed on a positive note. FIIs buying in the local equities helped."
Sensex laggards include Hindalco that fell by 2.29%, Sun Pharma 2.05%, Tata Power 1.65%, NTPC 1.50% and Larsen and Toubro 1.10%.
Among the S and P BSE sectoral indices, Healthcare rose by 0.74%, followed by Consumer Durables 0.72%, Auto 0.64% and FMCG 0.54%. Power index fell by 1.29% and Capital Goods slid 0.81%.
Total market breadth remained strong as 1,742 stocks closed in the green, 1,312 finished in the red and 106 ruled steady. Market turnover rose to Rs 3,608.37 crore from Rs 3,262.72 crore on Thursday.