Healthy corporate earnings in the second quarter and a strengthening rupee also lifted sentiment as the festive cheer continued on Dalal Street.
The 30-share BSE Sensex jumped 1,718.01 points, or 2.17 per cent, to settle at the day's high of 81,028.02.
The 50-share NSE Nifty rallied 493.75 points, or 2.01 per cent, to end at the day's high of 25,030.35. The benchmark index hit a nine-month high amid broad-based buying across sectors. It previously closed at 25,088.40 on February 2, 2026.
Among the 30 Sensex firms, Mahindra & Mahindra climbed 6.15 per cent after the automaker on Thursday reported a 25 per cent rise in consolidated profit after tax (PAT) for the second quarter ended September to Rs 4,587.88 crore, backed by strong revenue growth, particularly for the auto segment, despite headwinds emanating from the West Asia conflict-linked commodity price pressures.
ICICI Bank, HDFC Bank, Titan, Axis Bank and Kotak Mahindra Bank were also among the winners.
Power Grid was the only laggard from the blue-chip pack.
In the seven-session rally, a first in the last three years, the Sensex surged 7,781.99 points, or 10.62 per cent, and the Nifty rallied 2,331.5 points, or 10.27 per cent.
On Thursday, the Sensex zoomed 2,008.61 points, or 2.60 per cent, to settle at 79,310.01. The Nifty surged 576 points, or 2.40 per cent, to end at 24,536.60.
"Indian equity markets ended sharply higher on Friday, extending their winning streak to seven consecutive sessions and demonstrating considerable resilience despite the sharp sell-off in global technology stocks. In a notable departure from the weakness across Wall Street and other Asian markets, domestic equities largely shrugged off concerns over the unwinding of AI-related trades.
“The rally, however, remained largely concentrated in large-cap stocks, with banking and financial services shares emerging as the principal drivers of the gains," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The BSE MidCap Select index was up 0.23 per cent, while the SmallCap Select index declined 0.92 per cent.
Among BSE sectoral indices, Private Banks index jumped 2.99 per cent, Top 10 Banks 2.89 per cent, Bankex 2.19 per cent, Financial Services 2.14 per cent and Consumer Durables 1.78 per cent.
Capital Goods, Industrials, Telecommunication and Housing Finance were the laggards.
On the weekly front, the BSE benchmark soared 6,568.49 points, or 8.82 per cent, and the Nifty jumped 1,977.25 points, or 8.57 per cent.
Brent crude, the global oil benchmark, declined 1.50 per cent to USD 96.82 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 14,974.68 crore on Thursday, according to exchange data.
In Asian markets, South Korea's Kospi tanked 6.02 per cent and Japan's Nikkei 225 index was down 5.96 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended over 1 per cent lower.
Markets in Europe were trading in negative territory.
The US equity markets ended sharply lower on Thursday. The Nasdaq Composite tumbled 5.52 per cent, the S&P 500 dropped 4.36 per cent and the Dow Jones Industrial Average was down 3.44 per cent.
"Indian equities defied a global rout, extending their winning run as investors treated the home market as a relative safe harbour amid turmoil abroad. Wall Street was hammered by a sharp tech sell-off as investors weighed the prospect of tougher regulation under Democrats," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
