Market racked up gains after three sessions of losses as the benchmark BSE Sensex recouped 178 points on Friday, taking comfort from the Economic Survey which, coming ahead of the Union Budget, projected that the economy will grow at 7-7.75 per cent in 2016-17.
For the whole week, the gauge declined 554.85 points, or 2.34 per cent, and the Nifty 181 points, or 2.51 per cent.
The relief rally helped the index retake the psychological 23,000-mark.
The indices last week had posted their best weekly performance since October.
The beginning of March derivatives contracts helped while global cues turned positive after leaders who gathered in Shanghai for the G20 meeting tried to soothe market nerves, saying all is well.
The 50-share NSE Nifty ended above the key 7,000-mark at 7,029.75, up 59.15 points, or 0.85 per cent.
During Friday’s session, the Nifty shuttled between 7,052.90 and 6,985.10.
Early on, the 30-share barometer took back the 23,000 level, but soon succumbed to profit-booking before closing higher by 178.30 points, or 0.78 per cent, at 23,154.30. The gauge had lost 812.79 points in the previous three sessions.
Housing finance stocks gained on expectations of favorable announcements for the sector in the Union Budget 2016-17 to be announced early next week.
The Survey, while taking note of impending challenges, estimated growth at 7-7.75 per cent for the next fiscal and batted for more reforms, subsidy cuts and the need to adhere to the fiscal consolidation road map.
Major gainers that supported the key indices were Coal India, SBI, NTPC, L&T, Axis Bank, ITC Ltd, HDFC Bank, Tata Motors, HDFC Ltd, Cipla, M&M, Infosys, Adani Ports, ICICI Bank, BHEL, RIL and Hindustan Unilever.
"The upcoming Budget will reinforce the direction of the domestic market. Global equities are trading with a positive bias due to the rebound in oil prices and expectations over an ECB stimulus," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Bajaj Auto, Hero MotoCorp, Lupin, Bharti Airtel, GAIL, Wipro, Sun Pharma, Asian Paints and Maruti Suzuki lost.
Of the 30 constituents of the Sensex, 19 gained and 11 lost.
The BSE metal index gained the maximum, up 1.66 per cent, followed by banking 1.51 per cent, realty 1.47 per cent, capital goods 1.12 per cent, FMCG 1.06 per cent and PSU 1.06 per cent.
In broader markets, buying activity helped the BSE mid-cap gain 0.30 per cent while the small-cap fell 0.45 per cent.
Asia rallied after China’s central bank chief said Beijing still has enough monetary firepower to keep the world’s second-largest economy on track as G20 ministers gathered in Shanghai. European stocks are also pushing higher after the Wall Street advanced overnight.