The Nifty IT index rallied over 2 percent following sharp depreciation in the rupee and share buyback announcement by TCS..
The recovery in late trade due to further buying in technology stocks helped the benchmark indices close mildly higher on Friday despite mixed trade in global peers.
Not only technology but also pharma stocks and index heavyweight Reliance Industries helped the Nifty settle over 10,800 levels, but the selling pressure in banks, PSU oil and infra stocks capped gains.
Overall it was a rangebound session for the market. The 30-share BSE Sensex gained 22.32 points at 35,622.14 and the 50-share NSE Nifty rose 9.70 points to 10,817.70.
"We continue to remain cautious on the markets in the coming sessions. With lack of any fresh positive domestic triggers in the near term, volatility is likely to remain high with stock specific movement," Jayant Manglik, President, Religare Broking said.
He further said market participants will closely monitor global developments, especially in US, Europe and China. "Any further correction should be considered as a good buying opportunity for investors in quality counters."
For the week, the Sensex and Nifty gained half a percent each while Midcap index ended flat.
The broader markets underperformed frontliners with the Nifty Midcap index falling 0.6 percent on weak market breadth. About three shares declined for every two shares rising on the NSE.
Meanwhile, the rupee breached 68 against the US dollar for the first time since May 25, rising 38 paise to 68.01 a dollar.
On the stock front, the Nifty IT index rallied over 2 percent following sharp depreciation in the rupee and share buyback announcement by TCS.
Country's largest IT services exporter TCS gained 3 percent after the board approved share buyback of up to Rs 16,000 crore (7.6 crore shares) at Rs 2,100 per share. Infosys rose 3 percent while HCL Technologies and Tech Mahindra gained 1.2 percent each.
Healthcare stocks extended rally for the second consecutive session, with the Nifty Pharma index rising 2.2 percent. Dr Reddy's Labs rallied 3.5 percent after the pharma major launched Buprenorphine & Naloxone Sublingual Film in the US market. Cipla rose 4 percent and Sun Pharma climbed 2 percent.
Index heavyweight Reliance Industries ended at record closing high again, up 0.62 percent at Rs 1,014.20.
The Nifty Bank index declined over half a percent while Metal lost 1.5 percent and PSU Bank dropped 2.2 percent.
IOC, ITC, SBI, L&T, Yes Bank, M&M, Hindalco Industries, ONGC and Tata Motors were down 1-3 percent followed by HDFC Bank (down 0.4 percent) and ICICI Bank (0.8 percent).
On the global front, European shares were mixed as investors paused for breath after a stellar rally in the previous session fuelled by the European Central Bank (ECB). Britain's FTSE was down 0.7 percent and France's CAC gained 0.3 percent at the time of writing this article.
Asian markets closed cautiously mixed as investors awaited trade developments ahead of likely US tariffs on some Chinese goods. China's Shanghai Composite, Hong Kong's Hang Seng and South Korea's Kospi ended down 0.4-0.8 percent whereas Japan's Nikkei gained half a percent and Australia's ASX 200 rose 1.3 percent.Brent crude futures fell 1.2 percent to $75.01 a barrel on likely increase in oil output.