The benchmark Sensex rebounded by 1,293 points, while the broader Nifty shot up nearly 2 per cent to a record high on Friday, cutting short its five-day losing streak on heavy value-buying at lower levels and a rally in blue-chips like Reliance Industries.
The 30-share BSE Sensex jumped 1,292.92 points or 1.62 per cent to settle at 81,332.72. During the day, it soared 1,387.38 points or 1.73 per cent to 81,427.18.
The NSE Nifty surged 428.75 points or 1.76 per cent to settle at an all-time closing high of 24,834.85.
All the Sensex shares, except for Nestle, closed in the green.
Bharti Airtel was the biggest gainer, rising by over 4.51 per cent. Adani Ports, Sun Pharma, Tata Steel, HCL Technologies, Infosys, JSW Steel and Mahindra & Mahindra were the other big gainers.
Nestle was the only loser, closing lower by 0.07 per cent.
In Asian markets, Seoul, Shanghai and Hong Kong settled higher, while Tokyo ended lower. European markets were also trading in positive territory.
The US markets ended mostly lower on Thursday.
Global oil benchmark Brent crude declined 0.40 per cent to $82.04 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,605.49 crore on Thursday, according to exchange data.
After a sharp fall in intra-day trade on Thursday, the BSE benchmark managed to recover some of the lost ground to settle 109.08 points or 0.14 per cent lower at 80,039.80.
The NSE Nifty dipped 7.40 points or 0.03 per cent to 24,406.10.
In the past five days, the BSE benchmark Sensex tumbled 1,303.66 points or 1.60 per cent, while the Nifty declined 394.75 points or 1.59 per cent.