The Sensex and Nifty surged over 1.2 per cent at the closing session on Friday on the back of gains in IT, bank, capital goods and realty stocks amid firm global cues.
The 30-share BSE index Sensex was up 255.68 points (1.26 per cent) at 20,528.59 and the 50-share NSE index Nifty was up 75.25 points (1.25 per cent) at 6,096.20.
IT and TECk sector stocks rallied as Infosys revised both dollar and rupee revenue guidance upwards for 2013-14 fiscal.
Among BSE sectoral indices, IT index was up 3.12 per cent, followed by Bankex 3.09 per cent, Capital Goods 2.77 per cent and Realty 2.66 per cent.
On the other hand, Metal, Power, Healthcare and FMCG indices lost investors' support and were down 1.49 per cent, 1.1 per cent, 1.09 per cent and 0.92 per cent, respectively.
ICICI Bank, Infosys, L&T, Tata Motors and Maruti were the top five Sensex gainers, while the top five losers were Coal India, Tata Power, NTPC, Hindalco and Sun Pharma.
Both European and Asian shares were up on hopes that US lawmakers would reach an agreement on raising the country's debt ceiling to avoid a default.