Overnight on Wall Street, the Dow Jones Industrial Average closed 2,353 lower at 21,201, the S&P 500 tanked 9.5 per cent and the Nasdaq Composite ended 9.4 per cent lower at 7,202.

Equity benchmark indices ended lower on Friday ahead of the Union Budget even as the Economic Survey estimated that India's GDP will grow at 6 to 6.5 per cent in the financial year beginning April 1.

The BSE S&P Sensex closed 634 points or 1.55 per cent higher at 41,451 while the Nifty 50 moved up by 188 points at 12,214.

Among stocks, Mahindra & Mahindra rose by 1.2 per cent to Rs 536.75 per share while Power Grid Corporation moved up by 1.1 per cent and ITC by 1 per cent. Kotak Mahindra Bank, HDFC Bank and IndusInd Bank were up by 1 per cent, 0.8 per cent and 0.7 per cent respectively.

The BSE S&P Sensex was up by 192 points at 39,250 while the Nifty 50 edged higher by 44 points to 11,628. All sectoral indices at the National Stock Exchange were in the green with Nifty auto up by 1.37 per cent.

Infosys was the top loser at Rs 640 per share -- down by 16.65 per cent -- a day after an anonymous group calling itself 'ethical employees' alleged in a letter to the board of Infosys and the US Securities and Exchange Commission (SEC) that the company is taking unethical steps to boost short-term revenue and profits.

The retail category was subscribed nearly 15 times while qualified institutional buyers segment got subscribed 109 times and non-institutional investors category 355 times.

The BSE S&P Sensex closed 383 points or 1 per cent lower at 37,069 while the Nifty 50 edged lower by 98 points to 10,948.

Finance Minister Nirmala Sitharaman held a series of meetings last week with various stakeholders from the industry and capital markets.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.6 per cent even though it was still down more than 7 per cent over the past two weeks. Japan's Nikkei edged up 0.6 per cent while Chinese blue chips rose 0.9 per cent.