Indian shares ended higher by nearly 1.5 per cent, led by banks on the government's plan to infuse additional capital into public sector banks struggling with bad loans, and on strong corporate earnings posted by blue-chip companies.
Domestic sentiment was also buoyed as the Cabinet approval for amendments to the GST Bill raised hopes of its passage in Parliament.
The benchmark Sensex surged 409.21 points or 1.48 per cent to 28,114.56 and the 50-share NSE index Nifty jumped 111.05 points or 1.32 per cent to 8,532.85.
Barring power and oil & gas, all other BSE sectoral indices ended significantly in the green. Among them, realty index gained the most by 2.89 per cent, followed by healthcare 1.99 per cent, auto 1.8 per cent and FMCG 1.78 per cent. On the other hand, power index was down 0.6 per cent and oil & gas 0.26 per cent.
Top five Sensex gainers were SBIN (+5.25%), Coal India (+4.55%), Lupin (+4.26%), Dr Reddy's (+4.05%) and ICICI Bank (+3.97%), while the major losers were BHEL (-2.84%), NTPC (-0.7%), Tata Steel (-0.42%), Bajaj Auto (-0.18%) and Cipla (-0.13%).
European shares advanced for a fourth straight session to a one-week high on Friday, with forecast-beating earnings reports from some companies underpinning market sentiment.