Investors also preferred to buy after the recent slump in global shares was considered over-done amid worries over unexpected roll-back of US stimulus.Foreign institutional investors bought shares worth a net Rs 316.23 crore on Thursday as per provisional data from the stock exchanges.
In Asia, meanwhile, the sell-off continued with Nikkei shedding 3% from the day's high.
It finally ended with 1% gains at 14,612.
The Nikkei has soared nearly 70 per cent since November, off the back of aggressive fiscal and monetary policies to revive the economy, leaving the market susceptible to profit taking.
It fell more than 7 per cent on Thursday after Chinese data raised doubts about the health of the global economy, but it found support on Friday from investors looking for bargains.
BSE capital goods index gained 1.6% at 9,589 on the back of gains in Larsen & Toubro even as another major stocks, BHEL, dropped in trades.
L&T rose 2.7% at Rs 1,456 on bargain hunting after the stock fell 12.59% in the preceding four trading sessions to Rs 1,418.65 on Thursday.
BHEL slipped 1.5% at Rs 193 on worries over slow execution, pressure on margins and lack of fresh orders.
That apart, falling order book, high proportion (20-25 per cent) of slow moving orders, increase in working capital, especially receivables, are other key concerns, which continue to reflect in the financials of the company.
The consumer durables index added 1.8% at 7,433. Metal, realty, bankex and power indices added around 1%
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