The Sensex opened with a positive gap of 145 points at 15,840, but dropped to a low of 15,673 in late morning deals.
Renewed buying in heavyweights like L&T and Reliance saw the index move up to a high of 15,957 in noon deals.
The Sensex finally closed with a gain of 113 points (0.72%) at 15808.
The BSE Capital Goods, Oil &Gas and Power indices closed with gains of over 2% each on Friday.
The market breadth was positive - out of over 2,700 scrips traded, over 1,600 logged gains on Friday.
Index movers
BHEL moved up 3.7% to Rs 1,830. L&T added 3.6% at Rs 2,774. Reliance Energy gained 2% at Rs 1,281.
Reliance advanced over 3% to Rs 2,550. Satyam, SBI, Hindalco, M&M and RCom also finished with gains on Friday.
And losers
Ambuja Cements declined nearly 4% to Rs 118. Infosys was down over 2% at Rs 1,422. ICICI Bank dropped 1.6% to Rs 788.
While HUL slipped 2% to Rs 235, ITC was down 1.8% at Rs 204.
Most active counters
Reliance was the most active counter with a turnover of Rs 361 crore followed by Reliance Petroleum (Rs 325 crore), Orchid (Rs 280 crore), Reliance Captial (Rs 262 crore) and L&T (Rs 154 crore).