The BSE Sensex rose on Thursday for the first session in five as lenders such as ICICI Bank rose after steep recent falls, although caution still prevailed ahead of the GDP data announcement.
Investors will scrutinise April-June gross domestic product data out on Friday, given concerns that India's economy is slowing sharply even as inflationary pressures remain, making the prospect of monetary action uncertain.
A Reuters poll of 38 economists forecast growth of 5.3 per cent for the April-June quarter, unchanged from January-March quarter and marking its slowest growth since 2009.
Still, technical analysts were at least comforted the NSE index's recent support held firm at the 50-day moving average.
The BSE Sensex rose 0.29 per cent, or 51 points to 17,541.64 points, after declining a total of two per cent over the previous four sessions.
The 50-share Nifty rose 0.52 per cent to 5,315.05 points, closing above the 50-day moving average at 5,255.74 points, which has largely provide support since mid-June. Trading was volatile as August derivative contracts expired at the end of the session.
Among gainers, lenders recovered from recent steep falls as HDFC Bank rose 0.6 per cent, while ICICI Bank gained one per cent after slumping 5.9 per cent over the previous four sessions.
Other recent sharp decliners also gained, with aluminum producer Hindalco Industries rising 2.2 per cent after dropping 8.2 per cent over the previous four sessions. Defensive stocks gained as well ahead of the GDP data. Hindustan Unilever rose 1.2 per cent, while cigarette maker ITC added 0.5 per cent.