Taking a cue from the exit polls which predicted a BJP win in Gujarat and Himachal Pradesh, investors engaged in intense buying during the last two sessions of the trading week, which led to an upward rally in the key Indian equity indices.
Although broadly weak global cues, along with rising crude oil prices and poor domestic macro - data, infused volatility in the bourses, a strong rupee and investments by foreign portfolio investors (FPIs) helped uplift market sentiment.
On a weekly basis, the barometer 30 - scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) surged by 428. 77 points, or 1. 3 per cent, to close at 33, 462. 97 points.
The broader Nifty50 of the National Stock Exchange (NSE) edged higher by 67. 6 points, or 0. 66 per cent, to close the week's trade at 10, 333. 25 points.
"After surging higher in the early part of the week, Nifty witnessed a swift correction to once again bounce back from the lows of 10, 141.
The Nifty ended with week - on - week gains of 0. 66 per cent, " Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Among sectors, oil and gas rose the most, while realty and power fell the most, " he added.
According to D. K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, the global stock markets looked little nervous after a series of interest rate decisions across the globe.
"As expected, the US Fed raised its benchmark rate for the third time this year, increasing its short - term rate by a quarter - point.
However, the European Central Bank and the Bank of England kept rates unchanged, as anticipated, " Aggarwal told IANS.
"Back at home, the domestic market on Friday rallied on exit poll findings that the BJP is set to win in Gujarat and Himachal Pradesh assembly elections, " said Aggarwal, adding that the market moved higher aided by a rising rupee.
On the currency front, the rupee strengthened by 41 paise to close at 64. 04 against the US dollar from its last week's close at 64. 45.
Figures from the National Securities Depository (NSDL) revealed that FPIs invested in equities worth Rs 1, 571. 73 crore, or $243. 98 million, from December 11 - 15.
"FIIs (foreign institutional investors) remained net sellers this week, " Arpit Jain, AVP at Arihant Capital Markets, told IANS.
"November CPI (Consumer Price Index) shooting up to 15 - month high of 4. 88 per cent with bond yield raised to 7. 2 per cent, Fed's decision of hiking interest by 25 basis points and rising crude oil prices - all these factors created volatility in the market this week, " said Jain.
Provisional figures from the stock exchanges showed that FIIs sold scrips worth Rs 609. 91 crore, while domestic institutional investors divested in equities worth Rs 599. 98 crore during the week.
The top weekly Sensex gainers were: Dr. Reddy's Lab (up 8. 55 per cent at Rs 2, 372); Mahindra and Mahindra (up 6. 75 per cent at Rs 1, 482. 65); Lupin (up 4. 86 per cent at Rs 859. 90); HDFC (up 2. 72 per cent at Rs 1, 722. 85); and Adani Ports (up 2. 38 per cent at Rs 401. 95);
The losers were: Cipla (down 4. 59 per cent at Rs 575. 90); Tata Motors (DVR) (down 3. 04 per cent at Rs 226. 65); ICICI Bank (down 2. 29 per cent at Rs 303. 45); Tata Consultancy Services (down 2. 04 per cent at Rs 2, 547. 85); and Power Grid (down 1. 72 per cent at Rs 199. 40).