Mumbai, Jan. 16 -- Benchmark equity indices closed with modest gains on Friday, ending a two-day losing streak, as buying interest returned to IT stocks following Infosys' better-than-expected quarterly performance and an upgrade to its full-year revenue growth outlook.

Market sentiment also drew support from the ongoing December-quarter earnings season, with investors awaiting the Q3 results of Reliance Industries later in the day. Gains in IT shares, along with select banking stocks, helped the Nifty settle above the 25,650 level.

Adding to the positive tone, early trends from the Maharashtra assembly elections showed the BJP-Shiv Sena alliance in the lead. Markets generally view political stability and continuity in governance as sup...