Sensex rises 164 points on recovery in global markets

The BSE Sensex rose for a fifth time in six sessions on Friday, as a recovery in global markets helped blue chips such as ITC to recover from falls in the previous session, while cement makers such as ACC surged on speculation of price hikes.

Still, trading is expected to enter a subdued period ahead of general elections due by May with global factors gaining prominence, especially as the US Federal Reserve continues to scale down its monetary stimulus.

Asian shares rebounded from falls in the previous session after a survey showing brisk US manufacturing activity offset concerns about China's economic growth.

Foreign investors continued to pump money into the Indian markets, buying $33.09 million on Thursday and bringing their total over the previous seven sessions to $330.08 million, exchange data showed.

"Right now, our market is moving only on global cues. A large part of the market is waiting for the election outcome," said Mehraboon Irani, head, private client group at Nirmal Bang.

The Sensex ended up 164.11 points, or 0.8 per cent, at 20,700.75, while the Nifty closed 64 points higher, or 1.05 per cent, at 6,155.45.

The BSE index gained 1.64 per cent and the NSE index rose 1.77 per cent for the week, their biggest gain since the week ended December 20.

ITC shares rose 1.84 per cent on buying from foreign funds, traders said, while Tata Steel gained 2.09 per cent and Larsen & Toubro closed up 1.98 per cent.

Banking stocks continued to see investors' interest, with ICICI Bank higher 1.73 per cent, State Bank of India up 1.45 per cent and Axis Bank stronger 3.07 per cent.

HCL Technologies closed higher 4.43 per cent after The Wall Street Journal reported the company's founder Shiv Nadar was seeking potential buyers for his $10 billion stake in the company. However, HCL denied any plans of stake sale.