Recovering from record lows, the Bombay Stock Exchange benchmark Sensex on Friday closed nearly 128 points higher on funds buying blue-chips led by software exporters.

The Sensex, which had touched 40-month low levels in the previous day's trading, turned volatile before ending with a gain of 127.90 points to 8,325.82. It moved between 8,347.74 and 8,047.17 points during the day.