The NSE Nifty inched higher for the sixth session straight, closing at a fresh record on Friday, brought about by a robust rally in index heavyweight Reliance Industries.

Traders said that the rupee's rising streak and daily Covid-19 cases falling below the two-lakh mark also established bullish sentiment.

The Nifty rose by 97.80 points or 0.64 per cent to finish at 15,435.65, closing at a fresh lifetime high for the second straight day.

World markets remained upbeat following reports that US President Joe Biden will unveil a huge $6 trillion budget for 2022 as the economy emerges from the Covid-19 lockdown.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended on a positive note, while Shanghai was in the red.

Stock exchanges in Europe were also trading with gains in mid-session deals.

The 30-share BSE Sensex ended 307.66 points or 0.60 per cent higher at 51,422.88.

Reliance Industries topped the chart of Sensex gainers with a jump of 5.90 per cent.

After swinging into black in the March quarter, M&M, the homegrown auto major, spurted with a profit after tax (PAT) of Rs 163 crore.

Among the other gainers were the HDFC twins, Kotak Bank, IndusInd Bank, ITC and Bharti Airtel, climbing as much as 1.47 per cent.

On the other hand, Sun Pharma, Bajaj Finserv, Nestle India, ICICI Bank, Axis Bank and Dr Reddy’s were among the top losers, faltering by up to 4.30 per cent.

During the week, the Sensex rallied 882.40 points or 1.74 per cent, while the broader Nifty hiked 260.35 points or 1.71 per cent.

"Domestic equities remained upbeat and recorded fresh high as improved prospects of economy recovery and strong 4QFY21 earnings continued to bolster investors' sentiments. A strong rebound in Reliance Industries was a key driving force," said Binod Modi, Head Strategy at Reliance Securities.

Sustained market rally added over Rs 3 trillion in investors' wealth this week, with the market capitalisation of BSE-listed companies crossing the landmark USD 3 trillion during the week, he noted.

Further, a sharp drop in daily Covid-19 caseload in second wave (remaining below two lakhs despite higher testing) and improvement in recovery rates have emboldened investors in the last couple of days, he said.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Constant fall in US dollar is driving the Indian equity market in addition to the falling infection rate. The sustenance of the rally is supported by the recent improvement in foreign investment with the stabilising US yield and drop in the dollar index. INR is regularly appreciating against USD."

BSE energy, oil and gas, telecom, metal and finance indices rallied up to 4.35 per cent, while healthcare, power, utilities and consumer durables were in the red.

Broader BSE midcap and small-cap indices underperformed the benchmark, dropping up to 0.48 per cent.

The single day rise in coronavirus cases in India fell below the two-lakh mark for the second time this month, while recoveries continued to outnumber daily cases for the 15th consecutive day, according to the Union Health Ministry data updated on Friday.

A total of 1,86,364 new coronavirus infections were reported in a day, the lowest in around 44 days, taking the total tally of coronavirus cases to 2,75,55,457.

Meanwhile, the rupee strengthened for the third straight session to close 15 paise higher at 72.45 against the US dollar.

"Rupee appreciated for the fifth week in a row following weaker dollar index and rebound in risk on sentiments. Market participants are pricing in fiscal stimulus from government along with dovish stance from RBI when they meet for monetary policy decision on June 4," said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar further noted that "though the bias for rupee remains on bullish side, we expect profit booking near 72 odd levels as historically it has taken stiff resistance near that level. In near term, spot USD/INR could trade in the range of 72 to 73.30".