The benchmark index ended the week on the Bombay Stock Exchange (BSE) sharply higher, fuelling hopes that the market has finally bottomed out and shares would further strengthen their footing in the coming sessions on institutional buying interest.

While a section of analysts believe that the gloomy industrial production data released by the government in the week ended Friday may keep the investors edgy in the coming sessions, others say quarterly results of tech firms next week will bring cheers at the bourse.

The market barometer 30-share sensitive index or Sensex closed on Friday at 3,453.99, registering a gain of 148.21 points or 4.5 percent over its previous close.

"I think the market has now come to very realistic levels after moving sideways since the introduction of the new trading regime," said a fund manager with a foreign brokerage house.

The fund manager was referring to the adoption of a more contemporary option trading system by Indian markets earlier this month, replacing the decades old system of buying and selling shares using borrowed money, or carry-forward trade.

"It seems that the market has now bottomed out. Although there will be some profit booking by bear operators after gains in two or three straight sessions, the index is not likely to plunge sharply in the coming sessions," he told.

The market sentiment was briefly dampened in the week ended Friday by reports that India's industrial production grew by a meager 1.9 percent in May from 6 percent a year earlier as the economy remained in the grip of a severe demand slowdown.

Industrial growth has been on the wane for months, mainly due to lack of demand triggered by two years of falling agricultural production along with a slowing global economy and lower exports.

"The poor industrial production figures doesn't come as a surprise to the investors. Talks of industrial slowdown had been floating around in the market for quite some time now. Bull operators have already factored in these adverse economic developments," said a stock market analyst.

"Investors are now pinning their hopes on first quarter results to be announced by heavyweight software firms such as Wipro and some old economy companies over the next few sessions," the analyst added.

The improvement in share prices in the week ended Friday over previous week's slump came as corporate earnings reports, especially that of technology firms, showed a less-bleak picture than expected in the face of a severe downturn in major economies of the world.

"A sneak preview of better than expected performance by companies such as Infosys Technologies and Associated Cement Companies in coming months cheered investors this week," said the analyst.

Infosys, India's second largest software company, reported a 50 percent rise in net profits for the April-June quarter on Tuesday. Profits were pegged at Rs.1.9 billion, beating market expectations. Shares of the company jumped as much as 3.7 percent to a high of Rs.3,650 in the intra-week trade in reaction to the quarterly results.

But they eventually came down and closed the week with a moderate gain of nearly one percent to Rs.3,682.35 after the company said it faced pricing pressures because of slowdown in technology demand.

Shares of Satyam Computer Services, the country's fourth-largest software exporter, gained 12.3 percent over the previous week to Rs.185.75 after the company reported Wednesday its net profit had jumped 141 percent in April-June quarter from a year earlier.

The net profit growth of Satyam whacked the market estimates of a lower 115-120 percent growth.

In the old economy sector, Associated Cement Companies rose 4.01 percent to Rs. 139.90 after the company posted first quarter results that were largely in line with market expectations.

For the quarter ended June, the cement major posted a net profit of Rs. 439.5 million, a loss of Rs. 95 million from the corresponding period previous year.

New Delhi-based Ranbaxy Laboratories gained 14.02 percent to Rs. 482.05 after it announced impressive financial results for the quarter ended June 30. The company posted a 22.03 percent rise in net profit to Rs. 493 million.