Indian stocks closed higher on Friday, with the Sensex and Nifty reversing an early lull as financial and auto shares, typically sensitive to interest-rate moves, led the advance after the Reserve Bank of India cut its policy rate by 25 basis points.The S&P BSE Sensex climbed 447 points, or 0.52%, to finish at 85,712.37. The NSE Nifty 50 added 153 points, or 0.59%, ending the session at 26,186.45.