The last session of fiscal 2013, which coincided with the expiry of March series, made a surprise U-turn towards the end of the trading day.
The broader market too retrieved remarkably with advances taking over the declines, a first in many weeks. BSE smallcap and the Bank Nifty closed up 0.2 percent and 1.8 percent for the week.
Markets in India, Hong Kong, Australia, New Zealand and Singapore will be closed tomorrow for the Good Friday holiday.
Oil and gas, metal and cement stocks led the reversal on the street. GAIL moved up 5 percent, ONGC gained 2.92 percent, IOC rose 2.74 percent and HPCL jumped 1.5 percent. However, index heavyweight Reliance closed Rs 773.70 down 1.24% from its previous close of Rs 783.40.
Among metal heavyweights, Hindalco, Sterlite and Coal India closed with 4 percent, 2.9 percent and 2.62 percent gains. Hindustan Zinc and NMDC witnessed 4 percent and 2.5 percent upmove.
Key banking stocks witnessed sound gains on Thursday with ICICI Bank appreciating over 2 percent and HDFC Bank and SBI moving up over 1 percent each. Banks and autos were hit by the expectation of current account deficit figure coming in at a all-time high of 6.4 percent.
IT stocks like Infosys and HCL Tech closed with 1 percent and 2 percent gains. A Gartner report said worldwide IT spending was projected ar USD 3.8 trillion in 2013, a 4.1 percent increase from 2012 spending of USD 3.6 trillion.
The main index losers were Bharti Airtel, Tata Motors, Hero MotoCorp, Cairn India and Jindal Steel.
Meanwhile, the deadline mandating Indian banks to sign agreements to settle FX forward trades via Clearing Corporation of India Ltd (CCIL) has been removed for now, two sources with direct knowledge of the development told Reuters on Thursday.
Key equity benchmarks recovered in late afternoon trade, ahead of March expiry but continue to trade volatile.
The market has picked up in the afternoon trade on expiry day. Nifty has also cut some of its morning losses. Metals and oil & gas stocks are key gainers. The breadth of the market is also improving. The Nifty rollovers for the March series are inline with last three series
It has been a weak session for the market with Nifty struggling close to 5600 levels pulled lower by rate sensitives and commodity stocks. The market has stabilised a bit after losing over 100 points in the morning trade. The breadth of the market has also improved in the afternoon trade. BSE Midcap index is also up 1 percent.
Amid rampant selling, the 50-share Nifty touched its lowest intraday level since November 23, 2012 breaking its 200-day moving average. The Sensex touched its lowest intraday level since November 26, 2012.
The benchmark indices are beginning to crack ahead of the current account deficit numbers which are slated to be announced today.
Indices have now fallen in seven out of the last eight sessions, reflecting the bearish sentiment in the market. Stocks have tumbled despite foreign funds not having sold in a big way.
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See Nifty at 10460 by May '15; Brent at $ 95/bbl: Atul Suri