The benchmark BSE Sensex rose 0.63 per cent, or 121.04 points, to end at 19,444.84 points, gaining 1.05 per cent for the week, its first gain in three weeks. The broader Nifty also added 0.65 per cent, or 38.25 points, to end at 5,908.35.
Despite an uneven share price performance in December, foreign institutional investors have been strong buyers this month, with inflows of over $4 billion bringing the total for the year to around $24 billion.
Domestic gains were in line with Asian shares that gained on Friday, as investors continued to eye the US “fiscal cliff” negotiations amid news lawmakers will meet on Sunday in a final attempt to hammer out a deal.
Investors are looking forward to the country’s current account data for July-September due on Monday amid expectations it will show a record high deficit, sending the balance of payments into negative territory.
“Trend of the market will be based on events that are unfolding in next 15 days such as fiscal ciff resolution from the US, the Reserve Bank of India policy action and earnings season that starts from mid-January,” said Deven Choksey, CEO and MD at K R Choksey.
Energy conglomerate Reliance Industries rose 2.76 per cent, posting its best single-day gain since September 17.
