Foreign investors have been net buyers of cash shares in each of the previous 10 sessions, with net inflows totalling around $600 million, exchange and regulatory data show.
The strong buying has allowed the Sensex to gain 2.95 per cent in February, while the Nifty ended up 3.1 per cent, their biggest monthly gain since October 2013.
Still, that was less than the 4.3 per cent gain this month in the MSCI Asia-Pacific index outside Japan, as investors regained their appetite for emerging markets after a wobbly January.
Next week the marets would likely be marked by reaction to economic growth data for the October-December quarter, which has been a damoer and the PMI - Manufacturing due to be announced on Monday.
Poor Q3 GDP numbers are already discounted by the market, in fact these numbers in my opinion will provide some hope for rate cuts, that in turn will help the sentiment.
The Sensex rose 0.63 per cent, or 133.13 points, to end at 21,120.12, while rising 1.8 per cent to record its second consecutive weekly gain.
The Nifty rose 0.61 per cent, or 38.15 points, to end at 6,276.95, also up 2 per cent for the week.
Both indexes marked their strongest weekly performance since the week ended November 29, 2013.
Tata Motors rallied 3.9 per cent, earlier hitting a record high at Rs.418.20, while drug maker Lupin ended 3.7 per cent higher after earlier marking its all-time high of Rs. 1,002.40.
Among the IT. Stocks, Tata Consultancy Services surged 4.3 per cent while Sun Pharmaceutical Industries ended 2.6 per cent higher.
United Spirits gained 1 per cent, while Tech Mahindra rose 2.5 per cent after announcement of their inclusion in the NSE index from March 28.
Jubilant Life Sciences gained 6.9 per cent after the US Food and Drug Administration gave the green-light to its manufacturing facility at Montreal, Canada.
Jaiprakash Power Ventures surged 12.2 per cent while its parent Jaiprakash Associates rose 3.5 per cent fuelled by market expectations it could soon strike a $2-billion deal to sell two power plants to a group led by Abu Dhabi National Energy.
However, Maruti Suzuki India fell 4.5 per cent after the carmaker sought to allay investor concerns over its plan to source cars from a plant to be built by its parent Suzuki Motor in Gujarat.