"Local investors welcomed the end of tensions between the US and Pakistan after the release of Raymond Davis," said Samar Iqbal, a dealer at Topline Securities Ltd.
In the currency market, the rupee ended at 85.40/50 to the dollar, little changed from Wednesday's close of 85.43/47, and dealers said the local unit was expected to hold steady, thanks to rising dollar inflows largely from remittances.
Remittances rose by 20 percent to $6.96 billion in the first eight months of the 2010/11 fiscal year, compared to the same period the previous year, according to central bank data.
In the money market, overnight rates rose to end at top level of 13.90 percent, compared to Wednesday's close of 13.50 percent as dealers said there were some outflows from the market.