The Sensex on Friday gained 272 points to 16,949.83, its highest in a week, amid hopes that central banks globally, including RBI, may take steps to avert a worsening eurozone crisis that is likely to take a new turn after the highly-anticipated weekend polls in Greece.
The BSE benchmark index remained in the positive terrain mostly and closed higher by 271.95 points or 1.63 per cent, helping it log its second straight week of gains, amid fund inflows in auto, banking and realty blue chips.
The market received further support on firming trend in the Asian region and higher opening in European indices that tracked 1.2 per cent gain in American stocks on Thursday.
“Markets ended the day surprisingly strong... there were reports that central banks in the developed world are ready to help contain any negative fallout of Greek elections,” said Dipen Shah, head of fundamental research, Kotak Securities.
In the 30-share Sensex, 27 scrips ended higher led by Tata Motors, which rallied 5.75 per cent on Friday after suffering its biggest drop in two weeks on Thursday.
ICICI Bank, HDFC Bank and SBI closed with 1-3 per cent gains. In the auto pack, Maruti Suzuki, M&M and Hero MotoCorp ended 2.3-2.7 per cent higher. Index heavyweights ITC, Reliance and Infosys gained in the 1-1.6 per cent range.
Realty stocks also attracted buying on expectations that a cut in interest rate would boost home sales. RBI is widely expected to cut lending rates in its June 18 policy review.
The 50-share NSE index Nifty rose by 84.30 points, or 1.67 per cent to 5,139.05, after touching a high of 5,146.20.