The market gained for sixth consecutive week, with benchmark Sensex rallying 393.27 points to close at 38645.07, while the broader Nifty rose 123.40 point to finish at 11,680.50.
Broad-based rally lifted the key indices to muster gains for the week in the midst of August F&O expiry bedevilled by depreciating rupee amid rising crude oil and deficit concerns.
The first two days saw the market marking record closing highs supported by favourable global cues bolstered by statement by US Federal Reserve Chairman Jerome Powell's 'gradual approach" on monetary policy tightening.
Further, the revival of new US-Mexico trade agreement and subsequent global positivity induced solid liquidity in to the domestic market.
Caution, as well as August F&O option expiry day, led to profit-booking bouts for next three days of the week, while buying in Index majors or fundamentally strong stocks helped the market to erase losses and end week with ample gains.
The BSE Sensex started the week higher 38,472.90 and hovered between all-time high of 38,989.65 and low of 38,562.21 before ending the week at 38,645.07, showing gain of 393.27 or 1.03 per cent.
(The Sensex garnered 1,980.70 points or 5.43 per cent during past five week sessions).
The Nifty also resumed higher by 11,605.85 and touched a zoomed to new high at 11,760.20 and low 11,595.60, before the index finally settling at 11,680.50, a rise of 123.40 points, or 1.07 per cent.
Buying was led by Power, Metal, IT, HealthCare, Teck, PSUs, FMCG, Capital Goods, IPOs, Auto, Banks, Realty, Oil&Gas and Consumer Durables sectors.
The broader midcap and smallcap companies shares also ended with substantial gains.
On global markets, the S&P 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as Canada and the United States concluded trade talks without resolution ahead of the Labor Day weekend.
Capping a low-volume, late-summer week marked by tariff-related volatility, all three major U.S. indexes posted net gains for the period. The indexes were also up for the month of August, with the Nasdaq posting its largest monthly gain since January.
Amazon.com's shares continued to inch upward, rising 0.5 per cent as investors watch the company close in on its $1 trillion market share milestone.
Apple Inc closed up 1.2 per cent, reaching a new closing high for the fifth straight session.
The Dow Jones Industrial Average fell 22.1 points, or 0.09 per cent, to 25,964.82, the S&P 500 gained 0.39 points, or 0.01 per cent, to 2,901.52 and the Nasdaq Composite added 21.17 points, or 0.26 per cent, to 8,109.54.
Of the 11 major sectors in the S&P 500, five closed lower.
Coca-Cola Co agreed to buy the coffee chain Costa from Britain's Whitbread PLC for $5.1 billion. Its shares dipped 0.8 per cent.
Tesla Inc had a fifth consecutive decline following news that fund manager BlackRock voted in favour of replacing Elon Musk with an independent chairman.
The S&P 500 posted 34 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 121 new highs and 29 new lows.
Volume on US exchanges was 5.77 billion shares, compared with the 6.08 billion average for the full session over the last 20 trading days.
On Friday, oil prices slipped, pressured by renewed concerns that a global trade war could dent energy demand, although impending US sanctions on Iran and falling Venezuelan output limited the decline.
Benchmark Brent crude oil fell 42 cents to $77.35 a barrel. US crude slipped 36 cents to $69.89.
For the month, global benchmark Brent was set to jump 4.3 per cent and US crude 1.6 per cent. Oil has been buoyed by tumbling Venezuelan output and declining shipments from Iran ahead of the imposition of U.S. sanctions on Tehran in November.