BSE Sensex overcomes inflation jitters to end up nearly 1 percent

The stock markets will be closed on Monday on account of a local holiday.

Market sentiments were boosted by strong growth in industrial production, analysts said, allowing the Sensex and the Nifty to end in the green for the weekend.

In spite of government data showing that inflation level has spiked to an uncomfortable level of 7.41 percent as at March 29, up sharply from 7.0 percent a week earlier, the Index of Industrial Production (IIP), the barometer of the industrial growth, rose 8.6 percent in February from a year earlier, beating market forecast of 7.9 percent and improving upon January's figure of 5.3 percent.

"Investors think this is probably the worst possible scenario in terms of the rise in inflation, and things can only get better from this point," said Nipun Mehta, CEO, Unitis Tower Wealth. "The focus is now shifting to corporate earnings."

"Markets are uncertain and confused and are behaving in an erratic manner. Despite the inflation soaring to a new high the sentiments were positive, as the domestic negative news have already been discounted in the market and stocks have been oversold," said Rajesh Jain, vice president, SMC Global.

"These data indicate probably the worst is over and things will start looking up from next week," said Daljeet Kohli, head of research at Emkay Shares & Stock Brokers Ltd. "I don't see much downside in the market from this point."

"Despite a strong opening, there was air of cautiousness ahead of inflation figures and IIP data. Market discounted inflation with a knee-jerk reaction but IIP numbers were a pleasant surprise," said Ambareesh Baliga, vice president, Karvy Stock Broking.

"Market is in a consolidation phase. We have left most of the negatives behind, unless there are some rude shocks on the global markets front. It will be more an earnings driven market. We are not expecting a V-shaped recovery from here. For the next three weeks there will be stock and sector specific movement based on corporate earnings," he added.

Elsewhere in South Asia, Pakistan's Karachi 100 rose 0.82 percent to 15,340.89. In Sri Lanka, the share market was closed on Friday on account of a holiday.

The Asian markets continued the upward surge on Friday led by Japan's Nikkei 225, which soared 2.92 percent to 13,323.73. Hong Kong's Hang Seng gained 1.99 percent to 24,667.79; China's Shanghai Composite climbed 0.61 percent to 3492.89; Taiwan's Taiex advanced 0.91 percent to 8909.58; and South Korea's Kospi rose 0.85 percent to 1779.71.