MUMBAI (Reuters) - India's stock markets rose around 0.5 percent to a five-week closing high, tracking higher Asian markets as weak U.S. economic data bolstered expectations that a U.S. interest rate hike would come only later in the year.

The broader Nifty rose 2.4 percent for the week, marking a third consecutive weekly gain and its strongest performance since the week ended April 3. The benchmark BSE Sensex rose 2.3 percent for the week.

State Bank of India (SBI.NS) fell 2.7 percent as investors booked profits on a stock that gained as much as 5.1 percent earlier in the day. India's largest lender by assets posted better-than expected profit and a sharp decline in bad loan ratio.

Indexes are recovering from a volatile April amid signs that foreign investors are returning to the markets.

Strong global markets are also helping: the S&P 500 closed at a record high on Thursday after disappointing data on weekly employment, home resales and manufacturing bolstered expectations a U.S. interest rate hike would come only later in the year.

On Friday, the Nifty closed up 0.45 percent at 8,458.95, its highest close since April 17.

The benchmark BSE Sensex rose 0.53 percent to 27,957.50.

(Reporting by Himank Sharma; Editing by Biju Dwarakanath)