Equity benchmarks, after two consecutive days of losses, made an emphatic comeback on Friday backed up robust results of SBI which gave fresh stimulus to banking and finance stocks. The declining trend in Covid-19 cases also assuaged investor concerns.

Recording the biggest single-day jump, the 30-share BSE Sensex surged 975.62 points or 1.97 per cent to settle at 50,540.48.

A strong recovery in the rupee and positive global cues added to the buying momentum, traders said.

The broader NSE Nifty soared 269.25 points or 1.81 per cent to close at 15,175.30.

The prominent gainers in the Sensex pack were HDFC Bank IndusInd Bank, ICICI Bank, Axis Bank, and Kotak Bank.

SBI, which zoomed 4.30 per cent after posting solid quarterly earnings, reported an 80 per cent surge in standalone net profit at Rs 6.450.75 crore for the fourth quarter ended March 2021, as the bad loan situation improves.

Dr Reddy’s and PowerGrid, slipping up to 0.37 per cent, were the only two Sensex stocks that closed lower.

Investor wealth surged by Rs 2.41 lakh crore, with the market capitalisation of BSE-listed companies reaching Rs 218.05 lakh crore.

During the week, the Sensex soared 1,807.93 points or 3.70 per cent, and the Nifty rallied 497.50 points or 3.38 per cent.

The announcement of RBI’s decision to transfer Rs 99,122 crore as surplus to the exchequer kept the street bullish.

"The broader market too witnessed good activity as the curve of daily corona cases displayed a declining trend," said S Ranganathan, Head of Research at LKP Securities.

Meanwhile, the daily rise in coronavirus cases in India remained below 3 lakh for the fifth consecutive day, with 2.59 lakh new cases recorded in a single day.

"As the second wave of Covid-19 appears to be weakening, assumption of the second wave... to peak-out by the end of May or mid of June holds true and adverse impact of second-wave should not be felt beyond the first quarter of 2021-22,” Binod Modi, Head-Strategy at Reliance Securities.

All BSE sectoral indices ended with gains, led by bankex, finance, telecom, and power which surged up to 3.73 per cent.

The rupee strengthened by 29 paise to end at 72.83 against the US dollar amid a weaker American currency in the overseas market.

"Overall the sentiments are quite risk-on amid economic revival and reopening of the Western countries. Also, in India the improving trend of moderation in daily new Covid cases is boosting risk sentiments," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

He further added that forex traders will monitor the Covid scenario and trend in the US dollar, and keep the spot within 72.50-73.50 with a negative bias.

Global equities followed Wall Street higher as fears of inflation and the US Fed tightening its monetary policy receded.

Elsewhere in Asia, bourses in Tokyo and Hong Kong closed in the green, while Shanghai and Seoul nursed losses.

Stock exchanges in Europe were largely trading in the positive terrain in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.84 per cent higher at $65.66 per barrel.