rose 106 points, or 0.51 per cent, to 20,898.01. Overseas investors bought a net Rs 745.16 crore of shares on Friday, according to provisional stock exchange data.
In the forward market, the dollar premium declined further due to sustained receipts from exporters.
The benchmark six-month forward dollar premium payable in April dropped further to 213-214 paise from 218-220 paise previously and far-forward contracts maturing in October dipped to 447-449 paise from 453-1/2-455-1/2 paise.
The RBI fixed the reference rate for the dollar at 62.2260 and for the euro at 84.6410.
The rupee declined to 102.06 against the pound from 101.98 on Friday and firmed up to 84.31 against the euro from 84.98 previously.
The rupee hardened to 60.64 per 100 Japanese yen from 61.02 previously.