The benchmark BSE Sensex rose 2.4 percent this week as domestic-oriented stocks surged on hopes the incoming BJP government would keep up its promises to kick start an economy whose growth has dipped to its slowest in a decade.
Shares in companies such as Coal India, that are expected to benefit from an economic revival, and utilities performed well.
Sentiment was also boosted after Reuters reported that the finance ministry was working on a roadmap for cutting welfare spending and reining in deficit.
As of Friday’s close, India became the best performing equity market in Asia-Pacific for 2014 in dollar terms. The 30-share Sensex has gained 17 percent so far this year.
The rupee rose 0.4 percent for the week, posting its fourth straight weekly gain and its longest winning streak in 16 months.