The benchmark Index of Bombay Stock Exchange (BSE) ended on a steady note at 18,762.74, rising marginally by 10 points, 15-month-high, during the week following smart gains in select scrips including Bajaj Auto, L&T and ICICI Bank along with firm trend in Asian Markets.
The Nifty of National Stock Exchange (NSE) moved up by 12.15 points to 5,703.30.
The BSE Mid-Cap index moved up by 2.72% and the BSE small cap index rose by 3.06%. Both these indices outperformed the Sensex.
The government's resolve to contain the fiscal deficit and continued efforts to unleash economic reforms coupled with the encouraging news from Spain lifted India's benchmark share indices to their 15-month closing highs in the volatile week ended on Friday.
The Sensex has gained 21% in calendar 2012 so far.
The equity market gained on account of the sharp rise on Friday as Spain's plans for economic reform eased some worries about one of the euro zone's most troubled countries.
Country's fiscal deficit during the April-August period rose to Rs 3.38 lakh crore of the full fiscal year 2012-13, government data showed on Friday.
The surging rupee also favoured foreign institutional investors as they turned aggressive buyers. The rupee rose to a new five-month high of Rs 52.85 to a dollar on Friday.
The currency has gained almost five per cent in September, the highest against other Asian currencies.
Trading for the week began on a weak note as the Sensex declined by on Monday on global growth jitters, European sovereign-debt crisis and on ongoing tension between China and Japan.
The BSE Sensex drifted lower by 79.49 points at 18,673.34 and the Nifty shed 21.55 points at 5,669.60.
A slight improvement was seen on Tuesday, as it registered a small gain of 21.07 points at 18,694.41. The Nifty too rose marginally by 4.30 points to 5,673.90.
The Sensex slipped by 62.24 points to settle at 18,632.17 on profit booking by local operators.
The negative trend continued on Thursday also as it fell further by 52.67 points to settle at 18,579.50 in volatile trade as traders rolled over positions in the futures & options (F&O) segment from the near month September 2012 series to October 2012 series.
The September 2012 F&O contracts expired on Thursday.
And the last day of the week, erasing two days loss, the key benchmark indices edged higher by 183.24 points at 18,762.74 and the Nifty advanced by 53.80 points to 5,703.30.
Among 30 Sensex shares, 16 rose and the remaining shares declined.
India's largest tractor maker by sales Mahindra & Mahindra (M&M)topped the Sensex gainers. The stock surged by 6.97% to Rs 864.50.
Shares of most power generation, transmission and distribution companies and power equipment makers rose on renewed buying after the cabinet committee on Economic Affairs on Monday approved the scheme for financial restructuring of state distribution companies (Discoms).
India's largest state-run power equipments maker by sales Bhel increased by 6.26% to Rs 246.85. Tata Power rose by 4.14% to Rs 106.95.
However, state-run power utility NTPC fell by 0.47% to Rs 167.85.
Most FMCG stocks rose on favourable outlook for Rabi or winter crop following wide-spread rains in August and September.
Index heavyweight and cigarette maker ITC rose by 3.92% to Rs 271.90. FMCG major Hindustan Unilever improved by 2.83% to Rs 544.55.
In auto segment, Maruti Suzuki India rose by 2.83% to Rs 1349.90. Bajaj Auto gained by 1.79% to Rs 1,832.50.
However, Hero MotoCorp fell by 2.17% to Rs 1879.30.
Other scrips moved up including Cipla by 5.33%, Sun Pharmaceuticals Industries by 3.59%, Hindalco Industries by 2.38%, State Bank of India by 1.14% and Wipro by 1.01%.
Telecom operator, Bharti Airtel slipped by 5.11% to Rs 264.85 was top loser of the week.
Index heavyweight Reliance Industries (RIL) fell marginally by 1.55% to Rs 836.70.
Other scrips were down including Sterlite Industries by 4.65% to Rs 99.35, ONGC by 4.41% to Rs 280.40, Coal India by 3.35% to Rs 359.45, Tata Motors by 2.87% and Infosys by 2.34%.