The 30-share BSE index surged 929 points or 1.6 per cent to close at 59,183. While, the broader NSE Nifty settled 272 points or 1.57 per cent higher at 17,626.
Top gainers in the sensex pack included Bajaj Finance, Bajaj Finserv, ICICI Bank, Tata Steel, IndusInd Bank and HDFC Bank with their shares rising as much as 3.5 per cent.
While, Dr Reddy’s, M&M, Tech Mahindra and Nestle India were the only losers falling up to 1.13 per cent.
On the NSE platform, sub-indices Nifty Bank, Private Bank, Financial Services and PSU Bank gained as much as 2.72 per cent.
Equity markets ended 2021 with their best annual gain in 4 years.
According to experts, people have gotten used to living with Covid-19 variants and the rise in cases at present is not unique.
“Most Covid-19 cases we’re seeing now are mild… unless there is an explosion in the number, traders will take it in their stride,” Deepak Jasani, head of retail research, HDFC Securities told news agency Reuters.
He added that markets are up in anticipation of fresh inflows from foreign institutional investors, most of whom are still on holiday.
On Friday, foreign institutional investors (FIIs) were net buyers in the capital market, as they purchased shares worth Rs 575.39 crore, according to stock exchange data.
(With inputs from agencies)