Analysts say signs of improvement in the economy boosted investor confidence Stock markets registered strong gains on Friday in line with Asian peers.
The Sensex ended 579 points, or 1.7 per cent, higher at 35,011 while the Nifty settled at 10,553, up 172 points from the previous close.
That marked the highest closing levels for the benchmark indices since October 16.
Buying in banking, financial services, auto and metal stocks pushed the key indices higher, although losses in IT and pharma shares weighed.
Top gainers on the 50-scrip Nifty index were Maruti Suzuki India, Bharat Petroleum, Vedanta and Tata Motors, finishing between 5.8 per cent and 6.7 per cent higher.