The currency markets also appeared to strengthen with the rupee gaining over 50 paise to trade at 66.05/06 levels against the US dollar compared to Thursday's close of 66.55.
While the stock markets were volatile as the Prime Minister began his speech in the Parliament shortly after noon, share prices surged on heavy buying in the last 90 minutes of trade with sectors like consumer durables, healthcare, banking, IT and FMCG seeing good enquiries.
The 30-share Sensex ended at 18,619.72, up 218.68 points or 1.19 percent, extending gains to the third session in which the index has rose over 650 points. Friday is the highest close for Sensex since August 14 (19,367.59).
"The PM said once again that 1991 crisis will not be repeated and sub-3 percent GDP is very far from happening. Market showed strength ahead of GDP numbers to be announced on Friday. Oil prices eased as Syria crisis seems to be away," said Rakesh Goyal, Senior VP, Bonanza Portfolio Limited.
On similar lines, the Broad-based National Stock Exchange index Nifty rose by 62.75 points, or 1.16 percent to end at 5,471.80, after moving between 5,360.20 and 5,493.30.
Also, MCX-SX' SX40 index ended at 10,938.49, up 88.98 points.
Prime Minister Manmohan Singh also said that the government will now have to undertake more difficult reforms, including reduction of subsidy and implementing GST, to put economy back on the path of stable, sustainable growth.
In the Sensex pack, the two most influential counters RIL rose by 0.73 percent to Rs 851.55 and TCS by 3.96 percent to Rs 2,023.15. Other major gainers were Cipla, Dr Reddy's Lab., Bajaj Auto, Hero Honda, HUL and SBI.
Sectorally, the consumer durable index gained the most by rising 1.90 percent to 5,615.79, followed by healthcare index by 1.59 percent to 8,965.59. Banking index rose by 1.59 percent to 10,304.35 and Information Technology index by 1.54 percent to 8,027.55.


Latest News  from Business News Desk