During the week, the key indices opened gap-up 29,437.23, hovered between 29,824.62 and 29,356.05, before settling at 29,648.99, Showing sharp gain of 702.76 points, or 2.43 per cent.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) surged by 49 points or 0.54 per cent to 9,133.80 points.
The NSE Nifty slipped by 2.20 points or 0.02 per cent, to close at 9,084.80 points, while the BSE Sensex was marginally down 44.52 points or 0.15 per cent at 29,398.11 points. It saw an intra-day movement of about 70.80 points.
The US dollar nursed bitter losses in Asia on Thursday while sovereign bonds savored their biggest rally in nine months after the Federal Reserve hiked interest rates, as expected, but signaled no pick-up in the pace of tightening.
The pan-European STOXX 600 index rose 0.6 per cent and touched its highest level since December 2015, helped by the Fed's dovish tone and the Dutch election results. Shanghai decreased 0.96 per cent, Hang Seng increased 0.09 per cent, while Nikkei reduced 0.35 per cent.
Indian equity markets traded on a buoyant note during the mid-afternoon session on Thursday, supported by healthy buying in metals, capital goods and consumer durables stocks.
Advances outnumbered declines almost 3:1 on the NSE with 1,153 securities out of a total of 1,741 advancing, 490 declining and 98 remaining unchanged.
FIIs bought shares worth Rs 1,141.13 crore yesterday, as per provisional data. "Extended decline in VIX as well as continued FII buying have also propped up sentiment", said Anand James, Chief Market Strategist, Geojit Financial Services.
However, broader markets registered a mixed trend, with the small-cap index advancing and mid-cap retreating.
Major index gainers were Adani Ports (4.96 per cent), Tata Steel (4.30 per cent), HINDALCO (4.30 per cent), Tata Motors Dvr (2.23 per cent) and Asian Paints (2.21 per cent). However, Hero MotoCorp dropped by 1.32 per cent, followed by Bharti Airtel, RIL and Coal India.