"Foreign investors more specifically ETFs are panicking but government measures, pep talk may help shares in the near term," said Ashish Kukreja, managing director at wealth management firm Craft Financial Advisors Pvt. Ltd.
should not go below 5,500 in current circumstances until and unless the government remains silent, added Kukreja.
The Sensex rose 0.29 percent, or 54.95 points, to end at 18,774.24, after falling to its lowest intraday level since April 16 earlier in the session.
The broader Nifty rose 0.21 percent, or 11.75 points, to end at 5,667.65, after hitting its lowest since April 16 earlier in the day. The index closed down 2.4 percent for the week.
Software exporters were among the leading gainers, with Infosys Ltd rising 2.1 percent and Tata Consultancy Services
Ltd(TCS.NS) up 1.3 percent, on hopes a weaker rupee would improve returns from overseas earnings.
The rupee hit a record low of 59.9850 to the dollar on Thursday, on worries about India's current account deficit.
Among pharmaceutical exporters, Dr. Reddy's Laboratories Ltd rose 2.1 percent, while contract research and manufacturer Divis Laboratories Ltd(DIVI.NS) gained 1.3 percent.
However, lenders fell. The sector has been hit hard this week over fears that a record low rupee would prevent the Reserve Bank of India from cutting interest rates further after easing by 75 basis points already this year.
The NSE's benchmark for banking stocksNSEBANK fell 4.9 percent for the week, marking its fifth weekly decline.
Meanwhile, Housing Development Finance
Corp Ltd fell 0.2 percent and ICICI Bank
Ltd ost 0.1 percent as the stocks are among the top three shares in the BSE index with the highest foreign ownership, making them vulnerable to outflows.
Future Retail Ltd fell 32.9 percent as Friday marked the first day when the stock started trading after the retailer's fashion brands were spun off into a separate unit.