After surging 739 points in the last two sessions, the Sensex rose by 290.30 points, or 1.53 per cent, to 19,270.06 as 20 stocks in the Sensex stocks closed with gains.
This is the second week of gains for the 30-share index which jumped by 650.28 points or 3.49 per cent.
The broad-based National Stock Exchange index today rose by 87.45 points, or 1.56 per cent to 5,680.40. Also, MCX-SX's SX-40 index rose 183.35 points to settle at 11,391.56.
Brokers said continuing recovery in the rupee versus dollar also boosted equity markets. Rupee was trading at 65.2 levels compared to yesterday's close of 66.01.
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Sectorally, the banking sector index gained the most by 2.89 per cent to 11,333.44 as ICICI Bank surged by 7.3 per cent, HDFC Bank by 1.2 per cent, IndusInd Bank by 3.5 per cent, Yes Bank by 1.9 per cent and Axis Bank by 2.8 per cent.
The three most heaviest on the Sensex with their nearly 30 per cent weightage - Reliance Industries jumped up by 0.73 per cent to Rs 867.55, ITC by 1.51 per cent to Rs 316.20 and Infosys by 0.41 per cent to Rs 3,014.90.
The marekt will remain closed on Monday for 'Ganesh Chaturthi" and reopen for regular trading on Tuesday.
"Looking broadly at the market's fundamental setup, the falling USD/INR rates are favourable and now the marketmen would keep an eye on the movement of crude oil," said Nagji K Rita-Chairman & MD, Inventure Growth and Securities.