Shares gained more than a per cent on Friday on fresh foreign institutional buying ahead of the second-quarter gross domestic product (GDP) number announcement. The BSE Sensex closed at 20,791, up 1.3 per cent, while the NSE Nifty ended the day at 6,176, up 1.4 per cent on previous day's close. Hopes of the Bharatiya Janata Party (BJP) performing well in the state elections also bolstered sentiment.
The GDP number, 4.8 per cent, was in line with market expectations and is expected to further boost markets, said analysts. State election results' announcements will start from December 8.
"Markets believe the BJP could do well in the election results. That is creating some confidence in the market. Investors have been taking fresh long positions," said Vivek Mahajan, head of research, Aditya Birla Money.
On Friday, foreign investors bought Rs 745 crore while domestic were net sellers at Rs 101 crore, going by provisional data.
