Benchmark Indices have closed the trading session on a higher note led by buying demand among capital goods, IT and Auto shares.
Firm Asian markets also supported the upmove.
The 30-share Sensex ended at 18,755 up 194 points or 1.04% and the 50-share Nifty ended at 5,698 up by 53 points or 0.93%.
The Sensex and the Nifty touched an intra-day high of 18,794 levels and 5,711 mark, respectively.
On the global front, Japan's Nikkei share average climbed to a one-week high Friday as global cyclical shares such as carmakers rose on improved US economic data.
The Nikkei rose 1.2% to 9,051.22, ending above the 9,000 mark for the first time in a week.
The index gained 1.3% for the week.
Improved US consumer confidence and private-sector jobs data lifted sentiment ahead of US non-farm payroll figures due later on Friday.
The news lifted the dollar against the yen, which was quoted at 80.25 yen to the dollar, boosting the appeal of Japanese exporters.
Stock markets were stuck almost unchanged early on Friday ahead of US jobs data that will provide the last major signal on the state of the world's largest economy before voters go the polls on Tuesday.
Both European and world share indices were trading around their highest in two weeks and the dollar was just off a seven-week high, as positive data from the United States and China added to tentative signs of stabilisation of the world economy.
Back home, the rupee failed to retain initial gains but was quoting steady at 53.69 against the dollar today on the selling of the American currency by banks and exporters amid sustained capital inflows from foreign funds into equity market.
On the sectoral front, BSE Capital Goods and Auto indices surged by almost 2% followed by counters like IT, TECk, Metal, Power, PSU, Banks and FMCG, all gaining by 1% each.
In fact, all the sectoral indices ended in green zone.
From the Capital Goods space, L&T gained by nearly 2.5%. L&T has received new orders of over Rs 1,063 crore across various segments in October.
BHEL gained by over 1%.
Shares of automobiles companies were in limelight on the bourses with most of them trading higher by up to 3% after reporting a strong growth in October vehicle sales.
The auto makers hope for higher sales ahead of Diwali.
Bajaj Auto and Mahindra and Mahindra (M&M) were quoting at their historic highs after reporting highest monthly sales in October. Bajaj Auto and Maruti Suzuki gained between 1-3%.
Maruti Suzuki India posted an 87% increase in domestic sales at 96,002 units compared with 51,458 cars in the year-ago period. The company expects better sales in coming months as demand picks up in the second half due to festive sentiments and year-end buys.
Mahindra and Mahindra (M&M) gained over 2%, extending its previous day's 2% gain on the Bombay Stock Exchange, after reporting highest ever monthly sales of 53,438 units in October 2012.
Among software shares, Infosys, TCS and Wipro spurted between 1-2%. Wipro gained by nearly 1% after reporting a better-than-expected 2% quarter-on-quarter (qoq) growth in its consolidated net profit at Rs 1,611 crore for the second quarter ended September 2012.
Meanwhile, TCS surpassed Reliance Industries to become the country's most valued company as its market capitalisation soared to over Rs 2.61 lakh crore today because of spurt in the share price.
Banking and financial majors like ICICI Bank, SBI, HDFC Bank and HDFC gained between -2%.
Other notable gainers included GAIL, Sterlite, Hindalco, NTPC, ITC and Tata Steel.
Meanwhile, Meanwhile, BSE Midcap index rose by 0.36% whereas BSE Smallcap index closed up by 0.33%.
The market breadth in BSE ended positive with 1,542 shares advancing and 1,325 shares declining.
Marico Industries dipped 4% at Rs 204 after reporting lower than expected 10% year-on-year (yoy) growth in its consolidated net profit at Rs 86 for the second quarter ended September 2012.
Union Bank of India surged over 8% at Rs 223 on reporting 57% year-on-year (yoy) jump in net profit at Rs 554 crore due to higher interest income and lower provisioning for bad loans.
CESC gained by 2% at Rs 288 on reports that the company is planning to demerge its retail business, Spencer's Retail into separate listed entity.
Ratnamani Metals and Tubes surged 17% to Rs 119 on reporting almost two-fold jump in net profit at Rs 44.47 crore for the second quarter ended September 2012 mainly due to lower raw material and interest cost.
GlaxoSmithkline Consumer Healthcare (GSKCH) ended higher by 2% at Rs 3,079 after reporting 25% year-on-year (yoy) jump in net profit at Rs 129 crore for the third quarter ended September 30.