After rallying nearly 500 points in afternoon trade, the Sensex settled 269.43 points, or 0.71%, higher at 38,024.32. The NSE Nifty closed 83.60 points, or 0.74%, up at 11,426.85.

The 30-share index breached the 38,000-mark for the first time in six months. It had ended at 38,090.64 on September 14, 2018.

Broader indices, however, ended on a mixed note, with BSE midcap ending 0.55% higher and BSE smallcap slipping 0.34%.

Kotak Bank was the top gainer in the Sensex pack, ending 4.31% higher. PowerGrid, TCS, ICICI Bank, SBI, HCL Tech, NTPC, Infosys, Bajaj Finance, HDFC duo, ONGC, Vedanta and IndusInd Bank too rose up to 2.84%.

On the other hand, HUL, Yes Bank, ITC, Bharti Airtel, RIL, Sun Pharma and Axis Bank fell up to 2.16%.

Sectorally, the BSE power, bankex, teck, oil and gas, IT and finance indices gained the most, rising up to 1.94%, while BSE telecom, FMCG and energy indices fell up to 1.79%,.

“Benchmark indices outperformed with IT index leading from the front amid positive global cues, BREXIT & Trade-deal deadline has been extended. Besides, PSU banks are moving out of PCA frame and global liquidity is increasing supported by dovish FOMC which is positive for India. Strengthening rupee and drop in yield is positive for rate sensitive stocks,” said Vinod Nair, head of research at Geojit Financial Services, said.

During the week, Sensex surged 1352.89 points, or 3.68%, while Nifty climbed 391.89 points or, 3.54%. The BSE-30 index gained by around 3.5% in the past week.

Rally in the Indian markets was led by strong foreign institutional investors (FII), buying on account of reduction in geopolitical risks and opinion polls suggesting a likely return of the NDA government in the upcoming general elections, said Sanjeev Zarbade, vice-president, PCG Research, Kotak Securities.

On a net basis, FIIs bought shares worth a net of Rs 1,482.99 crore on Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 817.77 crore, provisional data available with the BSE showed.

“The flows from overseas from the FIIs have helped the markets, and a stable to stronger rupee has been facilitated by likely year end repatriations too,” said Joseph Thomas, head of research at Emkay Wealth Management.

Strengthening gains, the rupee appreciated on Friday jumped 24 paise to close at 69.10 against the US dollar on sustained foreign fund inflows and heavy buying in domestic equities. Forex traders said the dollar’s weakness against its key rivals overseas and easing crude prices strengthened the market sentiment domestically.

Elsewhere in Asia, Hong Kong’s Hang Seng rose 0.56%, per cent, Korea’s Kospi was up 0.95%, Shanghai Composite Index rallied 1.04%, and Japan’s Nikkei ended 0.77% higher. Similarly, in the Eurozone, Frankfurt’s DAX gained 0.27%. Paris CAC 40 rose 0.44%. London’s FTSE was up 0.54% in early deals.

Global crude benchmark Brent crude futures rose 0.43 per cent to USD 67.52 per barrel.