The S&P BSE Sensex, which opened at 27,851.81 points, was trading at 27,908.39 points (at 2.35 p.m.) – up 76.85 points or 0.28 percent from the previous day’s close at 27,831.54 points. For the coming week, the key resistance for Nifty would be closer to the 8400 mark.

Local currency declined 28 paise or 0.43 percent against dollar to settle at 65.83.

Extending its rally for the eleventh day, gold surged by Rs 365 to over six-week high of Rs 26,700 today amid a firming trend in global markets and buying by jewellers to meet the wedding season demand.

The gauge had gained 100.10 points yesterday. The BSE IT index advanced 1.6 per cent. From the IT space, blue-chip stocks such as TCS, Infosys and Tech Mahindra advanced 2 per cent each. The Sensex had ended the calendar year 2014 at 27,499.42. “There are a cluster of issues such as China worries, Fed (US Federal Reserve) minutes, the situation in other emerging markets in light of the commodity rout that are bothering (investors)”, said Gautam Chhaochharia, head of research at UBS Securities India Pvt. Ltd.

China will be a major factor to watch out for when it comes to global risks, said Assocham Senior Vice President Sunil Kanoria. Disappointing factory activity data out of China and the prospects of snap elections in Greece also rattled investors.

Shanghai Composite index too fell 2.47% on concerns over the economy and the possible removal of government support. Hong Kong’s Hang Seng, however, fell by 0.74 percent.

For the week, the BSE Sensex ended 2.5 percent lower, while the Nifty lost 2.57 percent. It weakened further to hit a fresh two-year low of 65.44 in late morning trade.

The rupee had closed at 65.31 a dollar at the Interbank Foreign Exchange (Forex) market on Monday.

Indian shares recovered from the day’s lows on media reports that the government was in favour of giving relief to foreign investors straddled with minimum alternate tax claims prior to April 1. Sources told CNBC-TV18 that a decision is likely next week.

While the fall in Sensex on Friday took the overall correction during the week at over 800 points or over 3 per cent, experts say that India will benefit from the slowdown in the Chinese economy in the medium term.

Maruti Suzuki India is declining 1.1 percent on price hike buzz. Rupee devalued around 5 percent as the People’s Bank of China has let yuan fall by 4.6 percent since August 11.