flows when tapering actually starts next month," said R. K. Gupta, managing director of Taurus Mutual Fund.
The benchmark BSE index rose 1.79 percent, or 371.10 points, to end at 21,079.72 marking its biggest single-day gain since Nov. 25. It gained 1.8 percent for the week.
The broader NSE index rose 1.74 percent, or 107.60 points, to end at 6,274.25, marking its highest weekly close since Nov. 1. It gained 1.7 percent for the week.
Reliance Industries Ltd surged 4.8 percent, marking its biggest single-day gain since May 27 after the government allowed the company to charge higher prices for gas from April.
The move came after the company offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output.
Shares in software services companies gained after Accenture Plc's results. Tata Consultancy Services Ltd gained 1.9 percent, Infosys Ltd rose 1.1 percent, Wipro Ltd jumped 3.7 percent and Tech Mahindra Ltd advanced 2.9 percent. Infosys made a record high at 3,573 rupees and is poised to overtake ITC Ltd as the stock with biggest weighting in the BSE index and the NSE index.
Shares in sugar companies rose after the federal cabinet approved a scheme providing interest-free loans to sugar mills as part of a bail-out package.
Bajaj Hindusthan Ltd rose 2.8 percent, Shree Renuka Sugars Ltd ended higher 1.3 percent and Balrampur Chini Mills Ltd gained 2.2 percent.
Maruti Suzuki India Ltd ended higher 1.6 percent after making a record high at 1.830 rupees earlier in the day on hopes of lower raw material costs of imported parts after the U.S. dollar hit a five-year high against the yen.
However, among stocks that fell, Parsvnath Developers Ltd dropped 1.2 percent on going ex-dividend.
FACTORS TO WATCH