The January-March gross domestic product rose to 8.8 per cent as against the estimated 8.2 per cent. It rose to 9.0 per cent for the full year compared to the expected 8.7 per cent.
"This (GDP) data is positive from the monetary policy dilemma perspective. But this is past. The policy will focus on GDP expectations going ahead and concerns are likely to continue," Sonal Varma, economist, Lehman Brothers, said.
The Sensex ended at 16,415.57, up 99.31 points or 0.6 per cent after moving between 16,314.99 and 16,540.49 during the day. The Nifty closed at 4870.10, up 34.80 points or 0.7 per cent. Intra-day, it moved between 4833.45 and 4908.85. The combined exchange turnover was Rs 204.5 billion, compared with Rs 211 billion on Thursday.
The market lost steam in afternoon trades, with Nifty and Sensex slipping into the red, but managed to recoup losses on gains in capital goods and tech shares. The inflation for the week to May 17 rose to 8.1 per cent.
But the market was resilient as the number was largely expected, dealers said. However, it capped a runaway rally. The capital goods companies were the top Nifty gainers due to robust quarterly earnings from L&T. Bharat Heavy Electricals ended up over 4 per cent at Rs 1,664 and L&T gained 3.5 per cent to Rs 2,983.
Technology shares were the other major gainers, as the sector is considered to be a safe investment bet in an uncertain market.
Tata Consultancy Services ended up 4.5 per cent at Rs 1,039 and Infosys Technologies rose 4 per cent to Rs 1,963.
Pharma shares gained on defensive buying. Dr Reddy's Laboratories ended up nearly 6 per cent at Rs 714 and Ranbaxy Laboratories went up by 5 per cent to Rs 528.
Housing Development Finance Corporation, up nearly 6 per cent at Rs 2,573, was the top Nifty gainer bucking the trend in the financial sector.
Bank and auto shares edged lower after inflation topped 8 per cent.
Hero Honda Motors ended down 4 per cent at Rs 746. The stock was the worst hit on the Nifty.
Punjab National Bank and Mahindra & Mahindra ended down 3 per cent each, at Rs 487 and Rs 590, respectively.
Power Grid fell 3 per cent to Rs 99. Reliance Industries, down 2 per cent at Rs 2,404, was the other major drag on the indices.
