By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex rose over 1 percent in a volatile session on Friday, marking its highest close in nearly two weeks as blue chip shares surged tracking a rebound in the rupee for a second day, ahead of April-June GDP data.
Ebbing prospects of a U.S.-led military strike against Syria were also seen helping shares even as foreign investors sold over $1 billion worth of shares in the previous 10 sessions through Thursday.
The broader NSE index however fell 4.7 percent for August, marking its biggest monthly fall in six, on continued concerns about a slowing economy, flip-flop policy response and investors pulling out of riskier assets globally on expectation of a scaling back of U.S. monetary stimulus.
Apart from watching the rupee and flows, traders are hopeful that some action on the ground alongside quick-fix solutions like a diesel price hike, export benefits would cheer the share market.
"There is a lot of compulsion to provide continuous support to rupee and thereby stock markets in the near term," said G. Chokkalingam, Executive Director and Chief Investment Officer at Centrum Wealth Management.
The benchmark BSE index rose 1.19 percent, or 218.68 points, to end at 18,619.72, also ending 0.5 percent higher for the week, snapping its five-week losing streak.
The broader NSE index rose 1.16 percent, or 62.75 points, to end at 5,471.80, although closing flat for the week.
Among blue chip shares, HDFC Bank Ltd
Software exporters gained to record highs on improving U.S. business prospects.
Tata Consultancy Services Ltd
Tech Mahindra Ltd
Oil and Natural Gas Corp Ltd
Mahindra and Mahindra Financial Services Ltd
However, among stocks that fell, Axis Bank Ltd
(Editing by Sunil Nair)