Shrugging off the mayhem on the first day of the week following widening trade-deficit, drop in inflation propelled market sentiment on hopes that Reserve Bank will cut rates in forthcoming policy meeting next month, sending both indices to multi-months highs.
Sustained foreign fund inflows amid positive global cues too supported the key benchmark indices to end in positive terrain for the fifth straight week.
Interest rate sensitive stocks from realty and banking were at the forefront on expectations of rate cut by the RBI in its next monetary policy meeting on June 17 to improve the economic growth.
Besides rate related stocks, capital goods, power, pharma and refinery share too were in demand while FMCG, consumer durable, IT and tech counters were at the receiving end on profit-booking.
The Bombay Stock Exchange 30-share barometer resumed the week sharply lower with a fall of nearly 431 points, largest fall in the current calendar year, and later rallied on positive economic data to a high of 20,328.19 before ending the week at 28-month high of 20,286.12, logging a rise of 163.80 points, or 0.81 per cent.
The wide-based 50-issue CNX Nifty of the NSE also flared up by 80.05 points or 1.31 per cent to nearly 30-month high of 6,187.30.
The onslaught of the first day was sidelined from the second-day of the week with recovery following sharp fall in Wholesale Price Index (WPI) to three-year low of 4.89 per cent raising anticipation of interest rate cut by the Reserve Bank to stimulate economic growth.