The broader NSE Nifty too slipped by 9.50 points, or 0.09%, to end at 10,118.25, after moving between 10,069.10 and 10,147.95. The 30-share Sensex was trading higher by 190.36 points, or 0.57 percent, at 33,139.57, with all sectoral indices in the green, led by consumer durables, bank, metal and auto.
The benchmark BSE Sensex ended 1.08 percent higher at 32,949.21 in its biggest single-day rise since November 1.
The gauge had lost 67.28 points in the previous session.
Top gainers in the Nifty 50 included Bharti Airtel, Maruti Suzuki India, Vedanta, Tata Motors, IndusInd Bank, Hindalco Industries and Adani Ports - up between 1.6 per cent and 3 per cent. Laggards included Infratel (-1.35%), Tech Mahindra (-0.51%), NTPC (-0.50%), HPCL (-0.44%), Ambuja Cements (-0.39%).
"On the macro front upcoming RBI policy and Gujarat state election will be an influential factor for investors which is steering the market to consolidate", said Vinod Nair, Head of Research, Geojit Financial Services. SBI, ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda and Yes Bank fell by up to 1.44 percent. Results are due later this month.
The markets opened the Thursday's session on a positive note with key benchmark indices extending intra-day gains. Participants sensed value-buying opportunities after the equities' recent lacklustre run, making stock valuations attractive, according to market participants.
In the global markets, Asian shares hovered near two-month lows on Thursday as softer oil and copper prices and uncertainty over U.S. policy kept many investors on the sidelines, even as some high-tech bellwethers bounced back after a searing sell-off.
The markets on Friday took off from the launchpad of yesterday's positive sentiment as Sensex gained nearly 200 points in initial trade. Shanghai Composite Index, however, shed 0.52 per cent.
The US Dow Jones Industrial Average ended 0.29 per cent higher in yesterday's trade.