MUMBAI: India's stock markets stabilised on Friday, rising nearly 1 percent as investors bought stocks such as Tata Motors battered in the previous session at cheaper valuations.
The benchmark BSE Sensex fell more than 2 percent on Thursday, hitting its lowest level in over one-and-a-half years after China accelerated the depreciation of the yuan, triggering a domino effect in global equity and currency markets.
Indian stocks mirrored markets in Asia that moved higher after China suspended its market circuit breaker system and set a firmer midpoint rate for the yuan.
The gains will help soothe frayed nerves back home going into earnings season next week when Tata Consultancy Services and Infosys report quarterly results.
"Next week we have numbers (corporate earnings) coming in thick and thin so markets will look for cues from there," Gaurang Shah, vice president at Geojit BNP Paribas said.
The broader NSE Nifty was trading 0.66 percent higher at 1.05 p.m. after rising as much as 0.87 earlier in the session. For the week, the index is set to lose 4.32 percent.
The benchmark BSE Sensex gained 0.64 percent after rising as much as 0.93 percent earlier. The BSE was on track to lose 4.4 percent for the week.
Tata Motors rose 3 percent after falling 6 percent in the previous session.
Axis Bank rose 1.25 percent after falling 5 percent on Thursday.
IT services provider MphasiS was up 2 percent on a report that Japan's NEC Corp <6701.T> was in early buyout talks.
Among the stocks that traded actively Reliance Industries gained 1.6 percent, while Larsen & Toubro fell over 1 percent after CLSA's strategist Christopher Wood replaced Larsen & Toubro with Reliance in his Asia ex-Japan long-only portfolio.