The markets observed high volatility during the opening session and touched a low of 4,097 in the late morning deals after opening on a firm note.

The index, however, bounced back in the early afternoon trades and spurted to a high of 4,225 towards the closing bell on a sharp rally in old and new economy stocks.

The Sensex finally wrapped up with a gain of 83 points at 4,217. The Nifty also ended 20 points higher at 1,322.

ITC flared up 3% (Rs 23) to Rs 796 on renewed buying support. While Reliance notched up 3% (Rs 11) to Rs 405, HLL added 2% (Rs 3) to Rs 181. More than 61 lakh Reliance shares changed hands on the BSE with a turnover of Rs 245 crore (Rs 2,450 million).

HPCL remained firm for a second consecutive day and logged 4% gains (Rs 13) to Rs 348. More than 26 lakh shares were traded on the BSE with a turnover of Rs 89 crore (Rs 890 million).

While SBI gained nearly 2% (Rs 7) to Rs 411, BHEL added Rs 3 to Rs 363. The banking major registered a volume of more than 32 lakh on the BSE with a turnover of Rs 130 crore (Rs 1,300 million). MTNL, however, ended weak with a loss of 2% at Rs 108.

Infosys, after a steady trading session till the early noon deals, gained ground thereafter and moved up 2% (Rs 93) to Rs 4,339. The tech major logged a volume of more than 2 lakh on the BSE with value at Rs 124 crore (Rs 1,240 million). HCL Tech at Rs 166 (up Rs 4 or 3%) and Satyam at Rs 241 (up Rs 5 or 2%) also bounced from their lows and finished in the gainers list.

Bajaj shot up 3% (Rs 23) to Rs 745. While Hero Honda spurted 4% (Rs 12) to Rs 282, Telco, too, advanced 3% (Rs 8) to Rs 275.

Grasim gained 4% (Rs 21) to Rs 594. L&T rose nearly 3% (Rs 7) to Rs 293. Gujarat Ambuja, however, ended with marginal losses.

Pharma counters, however, had a bad outing and ended with losses on Friday.