Healthy buying was witnessed in telecom, banking, finance and consumer durables stocks.
Sensex closed at 43,882.25, higher by 282.29 points or 0.65 per cent from its previous close of 43,599.96.
It had opened at 43,732.14, and touched an intra-day high of 44,013.02 and a low of 43,453.75 points.
The Nifty50 on the National Stock Exchange closed at 12,859.05, higher by 87.35 points or 0.68 per cent from its previous close.
The top gainers on the Sensex were Bajaj Finserv, Titan Company and Bajaj Finance, while Reliance Industries, IndusInd Bank and Sun Pharmaceuticals were the major losers on Friday.