Bharti Airtel was the big gainer in the rally, surging 7.89 per cent to Rs 431.60 as the company announced acquisition of Tata group's loss-making mobile telephony business, nearly for free, boosting its spectrum holding and user base.
The 30-scrip Sensitive Index (Sensex) of the BSE, too, witnessed a strong closing at 32,432.69 points - up 250.47 points, or 0.78 per cent, from its previous close - its highest level since August 1 when the Sensex closed at a high of 32,575.17 points. "Positive macro-economic data also aided sentiment today".
The data, which come out late on Thursday, showed annual consumer price inflation rose to 3.28 percent in September from a year earlier, in line with the August number, Business Standard reported.
"Nifty continued its up-run on Friday and closed the day higher by around 71 points".
Vinod Nair, Head of Research, Geojit Financial Services, said: "Market saw a fresh high due to good start to Q2 (second quarter) results".
In the primary market, state-owned General Insurance Corporation of India (GIC Re) got fully subscribed on the last day of its IPO subscription, reporting high demand from qualified institutional buyers (QIBs).
The banking sub-index of NSE - Nifty Bank - jumped over 1.5 per cent to 24,769.55, as investors rushed to buy banking stocks rate cut hopes. TCS' operating margin rose 170 basis points sequentially to 25.1 per cent in the September quarter.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined. However, Nifty Media (down 0.45 per cent), Nifty Pharma (down 0.33 per cent) and Nifty FMCG (down 0.15 per cebnt) ended lower among other sectoral indices.