Mumbai: In a day of see-saw trade, the benchmark S&P BSE Sensex rose 219 points to the highest level in more than two weeks after the Prime Minister's optimistic comments on the rupee and economy assured investors ahead of the release of Q1 GDP data.
Prime Minister Manmohan Singh told Parliament the country will face 'short-term shocks' but exuded confidence that growth in the current fiscal will rise to 5.5 per cent, up from a decade's low of 5 per cent in 2012-13. He acknowledged that growth in the first quarter will be relatively flat.
On the rupee, Singh said, "The sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms."
The 30-share Sensex opened at 18,424.72 from Thursday's close of 18,401.04 and traded between 18,272.76 and 18,679.26 before heavy buying in the last 90 minutes helped it to settle at 18,619.72, a rise of 218.68 points or 1.19 per cent.
The Nifty index on the National Stock Exchange rose 62.75 points, or 1.16 per cent, to end at 5,471.80, after moving between 5,360.20 and 5,493.30. The SX40 index on the MCX-SX ended at 10,938.49, up 88.98 points.
Bajaj Auto and Cipla were the biggest gainers on the Sensex, which closed at the highest level since August 14, when it was at 19,367.59. The index clocked its first weekly gain in six, adding 100.28 points over the past five sessions. This month, the Sensex has fallen 726 points.
Consumer durables, healthcare, bank and IT company shares led sectoral gains. TCS, HDFC Bank, HDFC and Hindustan Unilever were the biggest contributors to gains in the Sensex.
Receding fears of an attack on Syria after British lawmakers voted against military action in the House of Commons, which had kept global oil prices under pressure, also aided market sentiment. 
Asian stocks closed mixed following overnight gains in US stocks triggered by data that showed the US economy expanded more rapidly than previously thought in the second quarter. Key indices in China, Hong Kong, South Korea and Taiwan closed higher, while they fell in Japan and Singapore. The European markets were trading lower in early deals ahead of unemployment and consumer confidence data from the euro zone.
A rally in the rupee helped local indices to rise, with 18 Sensex stocks gaining. They were led by Bajaj Auto (5.62 pc), Cipla (4.96 pc), TCS (3.96 pc), HDFC Bank (3.86 pc) and HUL (3.70 pc). Jindal Steel dropped by 8.85 pc followed by Sesa Goa 2.70 pc, Tata Motors 2.35 pc, Hindlaco Ind 1.87 pc and M&M 1.61 pc.
Among the sectoral indices, S&P BSE-CD firmed up by 1.90 pc, followed by S&P BSE-HC 1.59 pc, S&P BSE-Bankex 1.59 pc, S&P BSE-IT 1.54 pc, S&P BSE-FMCG 1.54 pc and S&P BSE-Teck 1.44 pc, while S&P BSE-Metal dropped by 2.05 pc.
The market breadth remained positive with 1,156 stocks ending with gains, 1,074 finishing with losses and 178 ruling steady. Total turnover rose to Rs 2,952.59 crore from Rs 2,190.39 crore on Thursday. Foreign institutional investors sold a net Rs 248.18 crore of shares on Thursday, as per the provisional figures issued by the stock exchanges.