Continuing its gaining streak for the sixth straight session, the Bombay Stock Exchange benchmark Sensex on Friday closed higher by over 47 points on fund-based buying as rising industrial growth raised optimism of a faster economic recovery.

In choppy trading, the 30-share index, Sensex, which had gained over 818 points in the last five trading sessions, rose by 47.44 points, or 0.29 per cent, to 16,264.30, after moving between 16,337.98 and 16,130.32 points.

In a similar manner, the 50-share National Stock Exchange index shuttled between 4,856.15 and 4,791.55 points, before ending with a gain of 10.15 points at 4,829.55.

Brokers said the market remained volatile as rising industrial output for a seventh month in July gave indication of an early economic recovery, but falling exports remained a concern for investors.

Factory output grew by 6.8 per cent in July this year, more than 6.4 per cent in the same month a year ago.

They said a firming Asian and European stock markets, after China's industrial production grew at a faster pace than forecast, further supported the local bourses.

Amid choppy trade, 10 out of the 30-BSE index stocks gained, while 20 participants led by Reliance Industries, a heaviest on the key-benchmark ended with losses.

Shares of software firms, led by the second Sensex-heaviest Infosys Tech, closed higher, giving support to the market to maintain the crucial level of 16,000 points.

Wipro, the third-biggest software services provider, gained 1.53 per cent to Rs 552.45 on reports that the company has lifted a freeze on promotions and salary increases, suggesting higher profitability.

The IT sector index rose by 1.11 per cent to 4,368.73 on rising hopes of an recovery in the US economy. More than 50 per cent of the revenues of the IT firms come from the US markets.

Investor's confidence regained as Asian stocks moved up and the MSCI Asia Pacific Index had its biggest weekly advance since July after Chinese economic data beat economist estimates.

The MSCI Asia Pacific Index added 0.4 per cent to 117.59 in pre-close trading in Tokyo. It advanced 4.2 per cent in the past five days, the most since the week ended July 24.

The consumer durable sector index gained the most by 1.79 per cent to 3,374.24 on hopes that fresh monsoon rains would raise buying capacity of consumers in rural areas.

Public sector undertaking sector index was the second best performer by rising 1.52 per cent to 8,575.35 followed by banking index by 1.47 per cent to 8,911.44.

On the other hand, realty sector index fell by 1.63 per cent to 4,246.78, FMCG index by 1.18 per cent to 2,511.95 and oil and gas index by 0.71 per cent to 10,235.43.