The benchmark Sensex rallied over 456 points its biggest single-day gain in over one month to reclaim the 26,000-mark.
The investors went long on their positions amid the rupee regaining strength from record lows it posted on Thursday.
The Sensex opened strong at 25,953.24 and stayed in the positive zone through the session as buying activity gathered momentum.
It touched the day's high of 26,343.95 before closing at 26,316.34, a gain of 456.17 points, or 1.76 per cent its biggest single day rise since October 18 when it had gained 520.91 points.
The 50-share NSE Nifty ended the day at 8,114.30, up 148.80 points, or 1.87 per cent after shuttling between 8,122.25 and 7,976.75.