The benchmark BSE Sensex ended at a three-week high of 31,892.23 as a weaker-than-expected economic growth data raised hopes the central bank would cut interest rates in October.
The broader NSE index closed higher by 56.5 points or 0.57 per cent higher at 9,974.40, while the benchmark BSE index ended higher by 161.74 points or 0.51 per cent at 31,892.23.
The NSE index ended the week up 1.2 per cent, while the BSE index posted a weekly gain of 0.9 per cent.
Among BSE sectoral indices, realty index was the star-performer and was up 2.59 per cent, followed by auto 1.94 per cent, metal 1.86 per cent and healthcare 1.84 per cent. On the other hand, consumer durables index was down 0.27 per cent, followed by IT 0.17 per cent and TECk 0.1 per cent.
Top five Sensex gainers were Dr Reddy's (+9.75%), Asian Paints (-3.97%), Bajaj Auto (-3.92%), Tata Motors (-3.74%) and Tata Steel (-1.87%), while the major losers were TCS (-1.34%), Bharti Airtel (-1.26%), Power Grid (-1.17%), HDFC (-0.92%) and Wipro (-0.75%).
GDP data
The keenly-awaited first-quarter GDP growth numbers came in at 5.7 per cent, a three-year low and far lower than the 7.9 per cent GDP growth recorded in the same quarter last fiscal and the 6.1 per cent recorded in the January-March quarter.
The weak growth is raising hopes that the Reserve Bank of India (RBI) will cut its main policy repo rate at its next policy meeting in early October, after cutting it by 25 bps last month.
However, much will depend on August consumer price data due on September 12. The latest report showed annual retail inflation had risen 2.36 per cent in July from a year earlier, the first pick-up in four months. But that still is well below the RBI's consumer inflation target of 4 per cent.
Domestic sentiment was also buoyed as manufacturing sector growth bounced back in August from the previous month’s GST-related contraction owing to resumption of growth in new orders, production and employment.
According to provisional data, foreign institutional investors (FIIs) which had been net sellers on the Indian markets, had bought shares worth Rs 77.58 crore yesterday.
Asian equities followed Wall Street's gains overnight and edged higher on Friday while the dollar's advance slowed ahead of the US jobs report due later in the session.
The nonfarm payrolls report is the last before the US Federal Reserve's next policy meeting and may influence the timing of the Fed’s rate hike.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. Australian shares added 0.35 per cent and South Korea's KOSPI advanced 0.25 per cent. Japan's Nikkei climbed 0.4 per cent.