Fresh foreign fund inflows and intense buying in IT and commodity stocks also bolstered sentiment, traders said.

The BSE benchmark Sensex climbed 240.98 points or 0.37 per cent to settle at 65,628.14. During the day, it jumped 296.75 points or 0.45 per cent to 65,683.91.

The Nifty rose 93.50 points or 0.48 per cent to end at 19,528.80.

Wipro was the biggest gainer in the Sensex pack, rising 4.34 per cent, followed by HCL Tech, UltraTech Cement, Tata Steel, Tech Mahindra, NTPC, Infosys, Power Grid, Tata Consultancy Services and State Bank of India.

Mahindra & Mahindra, ITC, Axis Bank, Nestle, Kotak Mahindra Bank and Asian Paints were among the laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended with gains.

European markets were trading in the green in early deals. The US markets ended mostly in the positive territory on Friday.

Manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years, according to a survey released on Friday.

GST collections grew by 11 per cent to over ₹1.59 lakh crore in August on the back of improved compliance and reduced evasion, with experts forecasting higher mop-up to continue in the upcoming festive season.

Domestic passenger vehicle sales hit a record in August, led by highest-ever monthly dispatches from Maruti Suzuki on the back of festive demand and the continued strong offtake of SUVs.

Global oil benchmark Brent crude climbed 0.09 per cent to USD 88.64 a barrel.

Foreign Institutional Investors (FIIs) were buyers on Friday as they bought equities worth ₹487.94 crore, according to exchange data.

The BSE barometer had on Friday ended higher by 555.75 points or 0.86 per cent at 65,387.16. The Nifty had spurted by 181.50 points or 0.94 per cent to settle at 19,435.30.