Domestic equity benchmarks ended higher on Friday, supported by easing concerns over an imminent US Federal Reserve rate hike. However, profit booking at higher levels and continued geopolitical tensions limited the gains.
The Sensex closed 362.57 points, or 0.48 per cent, higher at 76,515.43, while the Nifty ended 24.25 points, or 0.10 per cent, up at 23,897.70.
During the session, the 30-share Sensex climbed as much as 730 points, or 0.95 per cent, to hit an intraday high of 76,883.14. It touched a low of 76,515.43.
The Nifty also gained during the session, rising 132 points, or 0.55 per cent, to an intraday high of 24,005.75. It touched a low of 23,895.85.
Among sectors, the Nifty Metal index was the biggest gainer, rising more than 1 per cent, followed by financial services stocks excluding banks.
On the other hand, the Nifty IT index declined 0.47 per cent. Nifty Pharma and Nifty Healthcare also fell 0.68 per cent and 0.87 per cent, respectively.
The India VIX, which measures market volatility, declined 6.24 per cent to 10.63.
Analysts said Indian equities witnessed a relief rally as concerns over an immediate US Fed rate hike eased. However, gains were restricted by profit booking at higher levels and ongoing geopolitical tensions in the Middle East.
They added that expectations of a marginal decline in core inflation in August could further strengthen hopes of a pause in Fed rate hikes and help keep volatility in bond yields under control.
Buying remained visible across several stocks and sectors in the broader market, with small-cap indices touching fresh lifetime highs. Analysts said strong earnings, resilient economic growth and robust domestic demand continue to support investor confidence in the broader market.
Meanwhile, the Indian rupee also ended higher at 94.48, gaining 0.09 per cent. Fresh FCNR deposit inflows supported the currency by improving dollar liquidity.