The benchmark Sensex on Friday jumped over 138 points to end at new closing peak of 25,962.06, led by oil & gas shares, on buying by overseas investors on hopes of continued economic reforms and a growth-oriented Budget.
The 30-share Sensex was supported by gains in Reliance Industries and HDFC Bank shares, traders said, adding that receding fears of the impact of a delayed monsoon on prices and strong global cues after upbeat US data and easing oil prices boosted market sentiments.
The BSE benchmark opened higher at 25,844.80 and firmed up further to a high of 25,981.51, It settled at new closing high of 25,962.06 -- a gain of 138.31 points or 0.54%.
It surpassed previous closing peak of 25,841.2 (July 2). For the week, Sensex gained 862.14 points -- first rise in four.
Oil and gas sector stocks attracted brisk buying support after reports that Oil Ministry is likely to move the Cabinet Committee on Political Affairs soon with an expert panel recommendations of raising kerosene and cooking gas rates.
The NSE 50-share Nifty also moved up 36.80 points, or 0.48%, to end at its all-time closing high of 7,751.60 after hitting 7,758.00. It previous closing peak of 7,725.15 was also reached on July 2.
Blaming hoarders for recent spurt in food prices, Finance Minister Arun Jaitley on Friday said there was no need for panic as country has enough food stocks and promised stern action against black marketeers.
Allaying fears of the impact of a delayed monsoon on prices, he also said "monsoon has just started, it is a late start and it is too early to create any panic".
Foreign Portfolio Investors (FPIs) bought shares worth a net Rs. 950.82 crore on Thursday, indicating their bullishness.
US stocks rose on Thursday with the Dow Jones Industrial Average hitting 17,000 for the first time and the S&P 500 index also scaling records after June jobs report.
Most Asian stocks ended higher on Friday as US jobs growth bolstered the outlook for the world's largest economy.
Key benchmark indices in Hong Kong and Japan moved up by 0.06-0.58% while indices in China, Singapore, South Korea and Taiwan moved down by 0.03-0.19%.
European markets were trading lower as Germany factory orders fell more than expected in May.
Key benchmark indices in France, Germnay and UK moved down in 0.06-0.13%.
On the Indian markets, Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Equity markets continued to trade positive on Friday also and posted all-time closing high. The US recovery boosted investor confidence." Major Sensex gainers include RIL (2.47%), HDFC Bank (2.29%), Dr Reddy's Lab (1.56%), Gail (1.17%), Infosys (0.88%), ONGC (0.88%), ICICI Bank (0.74%) and BHEL (0.71%).
However, Sesa Sterlite dropped 1.74%, followed by Wipro 1.46% and Larsen & Toubro 0.58% in Sensex 11 laggards.
Dipen Shah, Head-Private Client Group Research, Kotak Securities said: "Markets closed higher on Friday but that was after a fair degree of volatility. The markets closed the week with a new high on the benchmark indices. Market sentiment was buoyed by the comments coming from the PM and FM about modernizing the railways and taming inflation, respectively."
Among the S&P BSE sectoral indices, Oil&Gas rose by 1.67%, followed by Realty 1.10%, Power 0.89% and Bankex 0.73%.
Market breadth continued to remain positive as 1,683 stocks finished with gains while 1,357 stocks ended lower.
Total turnover rose to Rs. 3,862.53 crore from Rs. 1,429.99 crore from Thursday.
"We believe the benchmarks would continue their positive move on Monday as well. However, volatility is key concern among the participants nowadays and it will continue to remain so due to the upcoming Union Budget," said Jayant Manglik, President-retail distribution, Religare Securities.