Key benchmark indices surged on Friday on hopes of favourable monsoon and continued optimism about a turnaround in the economy boosted by data showing that foreign funds made substantial purchases of Indian stocks on the previous day.

As per data from the stock exchanges, foreign institutional investors (FIIs) bought shares worth a net Rs 1368.97 crore on Thursday.

That apart, firmness in European stocks also boosted investor sentiment in Dalal Street. Both the premium indices of the BSE and NSE scaled lifetime high on closing as well as on intraday basis. And the adrenalin rush has continued unabated in the current session.

The market breadth indicating the overall health of the market was strong. The BSE Sensex was up 376.95 points or 1.51 per cent, up about 265 points from the day's low and off close to 20 points from the day's high, while the 50-unit CNX Nifty at NSE was up 109.30 points or 1.46 per cent at 7,583.40, a record closing high for the index. Nifty hit a high of 7,592.70 and a low of 7,497.65 in intraday trade.

At the same time, the broader markets are continuing their recent outperformance. The BSE Mid-Cap index was up 142.63 points or 1.59 per cent to 9,098.54 points, while the BSE Small-Cap index was up 150.12 points or 1.56 per cent to 9,774.04 points. In effect, both these indices outperformed the Sensex.

With this, domestic stocks gained for the second day in a row on June 6, 2014. From a recent low of 24,805.83 on June 4, 2014, the Sensex has risen 590.63 points or 2.38 per cent in two trading sessions.

The Sensex has risen 1,179.12 points or 4.86 per cent in June so far (till 6 June 2014). It has gained 4,225.78 points or 19.96 per cent in calendar year 2014 so far (till 5 June 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 7,947.75 points or 45.54 per cent.