The Sensex on Friday ended 70 points higher at 46,960 while the Nifty rose 20 points to its record close at 13,760. For the week, both indices ended over 1.5 percent higher, up for the sixth straight week.
Infosys was the top gainer in the Sensex pack, rising around 3 per cent, followed by Bajaj Auto, SBI, ICICI Bank, HCL Tech, Titan and Asian Paints.
On the other hand, IndusInd Bank, ONGC, HDFC Bank, Maruti and Bajaj Finserv were among the laggards.
Among sectors, The Nifty IT and Nifty Pharma rose the most, up 1.5 percent and 1.3 percent, respectively while Nifty FMCG also added 0.3 percent. However, the banking and fin services index ended the day in the red. Nifty Metal also lost around 0.3 percent.
Domestic equities recovered from the day's low in tandem with recovery in banking stocks, said Binod Modi, Head- Strategy at Reliance Securities.
"Record foreign fund flows remain as a key driving force for the market. Strong prospects of earnings recovery, satisfactory progress on vaccination along with consistent improvement in recovery rate from COVID-19 cases, weak dollar and depressed interest rate scenario continue to act as key tailwinds for Indian equities to attract FPI flows," he added.
Foreign portfolio investors (FPIs) purchased shares worth a net Rs 2,355.25 crore on Thursday, according to provisional exchange data.
Elsewhere in Asia, bourses in Seoul ended on a positive note, while Shanghai, Hong Kong and Tokyo were in the red.
Stock exchanges in Europe were trading on a mixed note in early deals.
Meanwhile, the global oil benchmark Brent crude futures slipped 0.35 per cent to $51.32 per barrel.
(with PTI inputs)