Sensex posts first gain in four sessions; budget eyed

MUMBAI (Reuters) - India's stock markets posted their first daily gains in four sessions on Friday after a government report on the economy released days before the unveiling of the 2016/17 federal budget contained few surprises.

The economic survey from the finance ministry called for fiscal prudence and stable inflation, while acknowledging the risks to growth, although it also called for a review of India's medium-term fiscal strategy.

The broader NSE Nifty rose 0.85 percent to end at 7,029.75 points after earlier gaining as much as 1.2 percent. The benchmark BSE Sensex gained 0.78 percent to close at 23,154.30.

But the nifty fell 2.5 percent this week as caution largely prevailed ahead of the 2016/17 budget to be presented on Monday.

Recently battered financial firms were among the leading gainers, with State Bank of India ending up 2.7 percent.

(Reporting by Aastha Agnihotri; Editing by Rafael Nam)