The net investment by foreign institutional investors in the debt and equities was as much as a little under $3.5 billion during the week. During the year, thus far, they have invested some 26.6 billion, out of which 12.2 billion was in equities.

Among the top gainers was Cipla, up 11.18 percent, followed by Bharat Electricals, up 7.06 percent and State Bank, up 6.85 percent. The Losers were led by HDFC, down 7.10 percent, followed by ITC, down 3.66 percent, and Tata Consultancy, down 1.40 percent.

Looking ahead, analysts said uptrend may continue, amid volatility.

"The uptrend in the markets could sustain in the next week if Nifty manages to close above immediate resistance level of 7,930 points. A decisive break above 7930 could see Nifty heading towards 8,000 level in the next week," said the HDFC Securities report.

"On the downside, it is likely to find strong support at 7840 levels," it said."

"The market may also remain volatile next week as traders roll over their positions in the futures and options segment from the near month August 2014 series to September 2014 series."