The Sensex and Nifty rose on Friday, led by stocks of domestic-oriented companies including lenders such as HDFC Bank on value buying and hopes a likely win for the Bharatiya Janata Party (BJP) in two recent state elections would help push key reforms.
Opinion polls showed Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) was likely to win in Haryana and Maharashtra, unseating unpopular incumbents. Traders say the wins should help push key reforms such as gas price hike and goods and services tax.
The gains, however, were not enough to avert a fourth consecutive weekly fall amid one of the most volatile spells in world markets in years.
Shares are expected to remain volatile in the coming week, amid the state election outcome due on Sunday, ongoing July-September corporate results and global events such as China's quarterly gross domestic product on Tuesday.
"It's tough to call markets amid global volatility and fall in oil prices. Fundamentally the growth in India looks better than peers and it remains a buy on declines," said Deven Choksey, managing director of K R Choksey Securities.
The BSE Sensex rose 0.42 per cent, or 109.19 points, to end at 26,108.53 but closed 0.72 per cent down for the week.
The Nifty rose 0.41 per cent, or 31.50 points, to end at 7,779.70. It, however, ended 1.02 per cent lower for the week.
Domestic-oriented stocks, especially lenders, led the gainers. HDFC Bank and ICICI Bank gained 3.1 per cent each.
State Bank of India ended up 2.3 per cent and Axis Bank rose two per cent. Among mid-cap banks, Oriental Bank of Commerce rose 5.4 per cent and Andhra Bank surged 5.7 per cent. Among non-banking lenders, Housing Development Finance Corp gained 1.6 per cent, while IDFC advanced 2.1 per cent.
Larsen and Toubro gained 2.1 per cent and Mahindra and Mahindra rose 2.8 per cent.
Tata group's Rallis India fell 6.4 per cent after company's standalone July-September revenue growth of 2.3 per cent missed some estimates by wide margins.
