The 30-share BSE Sensex gained 466 points to conclude at a lifetime high of 63,384.58, while broader NSE Nifty rose 137.90 points to close at a record 18,826.
The Rupee recovered 34 paise to settle at a month high against the US dollar today, as domestic equity indices surged to new high levels.
The domestic unit opened higher at 81.97 on the interbank foreign exchange and traded in a range of 82.02 to 81.86 over the day.
The rupee ended at 81.94 against the US dollar, up 31 paise from the previous close.
The rupee fell to 82.25 against the dollar on Thursday, owing to a bearish trend in the domestic market.
On Friday, crude oil prices were trading lower with the benchmark Brent crude falling 0.58 percent to USD 75.23 per barrel.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was 0.08 percent higher at 102.20.
According to the exchange data, Foreign Institutional Investors (FIIs) were net purchasers in the capital markets on Thursday, purchasing shares worth Rs 3,085.51 crore.
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