Markets missed early gains but managed to end in the green on Friday, propped up by heavyweight Reliance Industries which announced another stake sale deal for its digital platform.
A strengthening rupee and firm global cues also supported the domestic bourses, traders said.
After rallying 645.13 points during the day, the 30-share BSE Sensex finally settled 199.32 points or 0.63 per cent higher at 31,642.70.
Similarly, the broader NSE Nifty rose 52.45 points, or 0.57 per cent, to finish at 9,251.50.
Reliance Industries was the biggest contributor to the gains on the benchmarks, jumping over 3 per cent after the company announced the sale of 2.32 per cent stake in Jio Platforms to US-based Vista Equity Partners for Rs 11,367 crore, the third such deal in a little over two weeks.
In absolute terms, Hindustan Unilever was the top gainer in the Sensex pack, rallying 4.81 per cent, followed by Nestle India, Tech Mahindra and Sun Pharma.
On the other hand, M&M, Axis Bank, NTPC and IndusInd Bank were among the major laggards, shedding up to 3.87 per cent.
During the week, the Sensex plunged 2,074.92 points or 6.15 per cent, and the Nifty tanked 608.40 points or 6.17 per cent.
Meanwhile, international oil benchmark Brent crude futures climbed 1.73 per cent to USD 29.97 per barrel.
On the currency front, the rupee appreciated 18 paise to provisionally settle at 75.54 against the US dollar.
Globally, the number of cases linked to COVID-19 has crossed 38.46 lakh and the death toll has topped 2.69 lakh.
In India, the death toll due to COVID-19 rose to 1,886 and the number of cases climbed to 56,342, according to the health ministry.