Prominent stock indices, the Nifty 50 and BSE Sensex, increased by 2.39% and 2.29%, respectively, led by a rise in energy stocks. An acceleration of factory growth in November and a faster-than-expected quarterly economic growth contributed to the rise in domestic equities.

During the course of the week, all 13 major sectors saw gains, and small- and mid-cap stocks—which prioritize the home market—kept outperforming the well-known blue-chip stocks.

"Indian markets are currently benefiting from the return of foreign inflows, robust macroeconomic data, and a more favorable US interest rate outlook, among other factors," said Umeshkumar Mehta, chief investment officer at Samco Mutual Fund.

In November, foreign portfolio investors (FPIs) added stocks valued at 90 billion rupees ($1.1 billion), breaking a two-month selling streak.Benefiting from a drop in crude oil prices, Oil & Gas jumped by 4.38% to become the best-performing sector for the week. The OPEC+-agreed production cuts did not meet market expectations. That day, the S&P BSE Sensex gained 0.74% to 67,481.19, while the Nifty 50 index gained 0.67% to set a new closing record of 20,267.90.

At present, the Sensex is less than 1% from reaching its peak, which was reached on September 15, 2023.

Hindustan Aeronautics saw a 3.46 percent increase in individual stock price after the defense ministry approved the purchase of weapons worth 2.23 trillion rupees.