The market uptrend went into the second day on Friday, with the Sensex spurting 53 points to bring up a fresh 1-month closing high of 26,747, in keeping with firming global indices amid investor optimism.
The benchmark BSE index closed 0.20 percent higher at 26,747.18, gaining 1.97 percent for the week.
The broader NSE Nifty soared 144.80 points, or 1.79 per cent, to close the day at 8,246.85 after shuttling between 8,256.25 and 8,151.75.
The BSE Sensex, which opened at 26,787.14 points, was trading at 26744.34 points (at 9.17 a.m.) in the early session, higher 50.06 points or 0.19 per cent from the previous day's close at 26,694.28 points.
The key Indian indices provisionally closed on a flat to positive note as healthy buying was witnessed in banking, IT and FMCG stocks.
Global sentiment was also buoyed after Wall Street hit record highs on Thursday and after the European Central Bank extended it asset-buying programme for a longer period than many analysts had expected, though it trimmed the size of its purchase.
Covering up short positions by speculators fearing buying activity to pick up in the coming session supported the upside, observers said. Foreign portfolio investors (FPIs) bought shares worth a net Rs 698.86 crore on Thursday, according to provisional data.
State Bank of India, HDFC Bank, ICICI Bank and Axis Bank advanced by up to 1.72 per cent. The rally continued on SUN TV with the stock gaining 7.6 per cent. Banking stocks showed upward traction with 20 out of 22 banking futures gaining between 0.2-5.2 per cent. IDBI Bank futures were the top gainers and the rise was accompanied by a substantial increase in traded volumes.
Tata Motors, Adani Ports, Hero MotoCorp, Bajaj Auto, ITC Ltd, Maruti Suzuki, Coal India, M&M, RIL, Cipla, Infosys and Sun Pharma too gained.
Among the Asian stocks, China's Shanghai Composite gained 0.69 per cent, Hang Seng Index was down 0.40 per cent while Japan's Nikkei clocked over 200 points gaining 1.11 per cent.
In the sectoral landscape, realty stocks rallied the most pushing the S&P BSE Realty index to 1,298, up 1.62 per cent. The market breadth remained positive as 1,449 stocks ended higher, 1,173 finished in red while 178 ruled steady.