Equity indices ratcheted higher on Friday after two sessions of heavy losses as investors snapped up recently-battered banking and finance stocks in lockstep with a rebound in global markets.

A recovering rupee also bolstered market sentiment, traders said.

The 30-share BSE Sensex surged 568.38 points or 1.17% to finish at 49,008.50. Similarly, the broader NSE Nifty cimbed 182.40 points or 1.27% to 14,507.30.

Bajaj Finance led the Sensex gainers' chart with a jump of 4.49%, followed by Asian Paints, Titan, HUL, Bajaj Auto, Bharti Airtel, HDFC and Nestle India.

The HDFC twins accounted for most of the index's gains.

Tata group stocks rallied after the Supreme Court set aside the NCLAT order restoring Cyrus Mistry as executive chairman of the conglomerate.

On the other hand, PowerGrid, IndusInd Bank, ITC and Maruti were the laggards, dropping up to 0.97%.

On a weekly basis, the Sensex declined 849.74 points or 1.70%, while the Nifty fell 236.70 points or 1.60%.

"Equity market has been consolidating under fear of losing its traction of economic growth recovery. Positive US job data and climb in fourth-quarter US GDP to 4.3% helped to reduce the gravity of the contraction.

"On the domestic front, high-frequency data suggests good economic activity in Q4 FY21 and results will be announced from April. The second wave of COVID and high valuation will maintain volatility in the near term," said Vinod Nair, Head of Research at Geojit Financial Services.

All sectoral indices ended on a positive note, with BSE metal, consumer durables, telecom, basic materials, FMCG and realty surging as much as 3.49%.

In the broader markets, the BSE midcap and smallcap indices spurted up to 1.66%.

Global equities ticked higher amid easing of bond yields, even as the COVID-19 situation remained an overhang.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with significant gains.

Stock exchanges in Europe were also trading on a positive note in mid-session deals.

Meanwhile, the global oil benchmark Brent crude rose 2.05% to $63.22 per barrel amid reports that the process to free the giant cargo ship stuck in the Suez Canal may take weeks.

The rupee snapped its three-day losing streak and closed 11 paise higher at 72.51 against the US dollar, supported by positive domestic equities and weakening of the American currency in the overseas market.