The benchmark Sensex gained sharply by 973 points to end the week at an all-time closing high at 21,004.96 and the 50-unit S&P CNX Nifty also surged past the psychological 6,300 level.
The NSE 50-issue Nifty logged the high of 6,338.50, just nearly 20 points away from its historical high registered on January 8, 2008. It also ended the week at an all-time high of 6,312.45, a rise of 294.75 points or 4.90% from its last weekend's level.
Frenzied buying by foreign funds, easing of food inflation, Q2 results announced by some major companies and a rescue package of USD 600 billion given by the US Federal Reserve to stimulate the economy, mainly underpinned the sentiment.
Foreign Institutional Investors pumped a massive USD 26.74 billion in 2010 so far, supporting the rally.
All round buying mainly in financial, consumer durable, realty and capital goods sectors helped the benchmark Sensex to rally, a broker said.
Banking stocks were on a roll with sector heavyweight ICICI Bank share striking 52-week high above Rs 1,200 on decent Q2 results.
The manufacturing sector expanded in October 2010 at a much faster pace than in September 2010, supported by strong output and a sharp rise in new business.