Closing Bell: Sensex gains 228 points, Nifty holds 11,800; Zee, UPL up 6% each

Markets began the day sharply lower but rebounded to end higher on Friday on hopes that the government could announce a rollback of taxes for foreign portfolio investors.

Later today, union finance minister Nirmala Sitharaman is likely to brief the media.

World stock markets and the dollar also rose as investors awaited a speech by Federal Reserve chair Jerome Powell for rate cut guidance.

The Sensex ended 228 points higher at 36,701, while the broader Nifty50 index added 88 points to end the day at 10,829. In broader markets, the Nifty Midcap rose 1 percent and Nifty Smallcap index advanced 0.76 percent.

Zee, Vedanta, YES Bank, UPL and BPCL, were top gainers on the Nifty50, while IndusInd Bank, ITC, Eicher Motors, ICICI Bank and Kotak Bank led the losses.

Sectoral indices were mixed for the day. The Nifty Media index rose the most, up 4 percent, followed by the Nifty Metal, up 3.4 percent. The Nifty PSU Bank added 2 percent, while the Nifty Pharma and the Nifty Auto indices advanced around 1.5 percent each.

The Nifty IT also gained 1 percent on the lower rupee. Among losers, the Nifty FMCG fell 0.5 percent, while the Nifty Bank and the Nifty Private Bank index were down 0.3 percent and 0.4 percent, respectively.

The rupee tailwind has helped technology stocks rise over than 1 percent during Friday's trade. Tata Elxsi, Mindtree, NIIT Tech, TCS and Infosys gained between 0.7-7.3 percent.

Yes Bank gained over 5 percent after CNBC-TV18 reported that the private sector lender is in talks with private equity firms to raise Rs 9,000 crore. Private lender's management is currently seeking permission for the fundraising from the board, which is likely to meet soon and make a decision, sources told CNBC-TV18.

Edelweiss Financial Services fell over 7 percent following reports the Enforcement Directorate is examining an investment made by its unit Edelweiss Asset Reconstruction Company (ARC) in Kohinoor Group.