The index rising for the first time in three days also got a leg-up from the rupee, which appreciated against the dollar.
The 30-share Sensex scaled the day's high of 27,555.06, but took a hit from profit-booking in select blue-chips as it finally closed up 183.15 points, or 0.67 percent, at 27,470.81, a level last seen on August 20.
On weekly basis, both Sensex and Nifty climbed 256.21 points (0.94%) and 57.30 points (0.69%), respectively, to log their fourth straight weekly rise.
ITC and Axis Bank emerged as top gainers in the Sensex pack by surging 2.81 percent each.
The rally in the benchmark was also fuelled by gains in GAIL, NTPC, HDFC and ICICI Bank.
Of the 30 Sensex constituents, 20 ended with gains while 10, including Bharti Airtel, Vedanta Ltd and L&T, lost.
Among BSE sectoral indices, banking gained most jumping 1.30 percent, followed by FMCG oil & gas and PSU.
The broader markets, however, were down as investors locked in gains in recent gainers. The BSE small-cap and the mid-cap indices fell 0.37 percent and 0.26 percent, respectively.

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