Indian stock markets surged in tandem with worldwide bourses during the week ended on June 18.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained around 3% as compared to its previous weekly closure as investors across the globe continued to buy on projections that there would not be another full-blown financial disaster, this time triggered by Europe.

The Sensex gained 505.87 points (2.96%) to close the week at 17,570.82 on Friday.

The broad-based Nifty also marked its closure at 5,262.6 after gaining 143.25 points (up 2.79%) as compared to its last weekly closure at 5,119.35.

During the week, the BSE midcap index surged 1.32% and the BSE smallcap index increased by 2.41%.

On Friday, the Sensex lost 45.87 points to close the week in red at 17,570.82 on the back of some profit booking witnessed at higher levels by local operators.

The Nifty index of National Stock Exchange (NSE) lost 12.25 points to mark its closure at 5,262.60.

Indian stock markets hit the day's low in late trade as scrips from Mukesh Ambani and Anil Ambani pack broadened losses after the elder brother gave no details of settlement between them during the RIL's AGM.

The stock market remained volatile and the overall breadth was weak as compared to a strong breadth earlier in the day.

Among other Asian bourses, the Japanes Nikkei surged around 3% to close the week at 9,995.02 after investor interest returned in the market.

The Hang Seng of the Hong Kong Stock Exchange ended at 20,286.71 after surging 2.08%.

But, the Chinese Shanghai composite index closed in the negative at 2,513.22, down 2.21% as against its last weekly closure, after the administration stated that it would place a cap on increasing drug costs.

Key European indices hit new highs not seen in almost a year as fears over sovereign debt of some of the countries retreated.

London's FTSE ended 1.69% up to close the week at 5,250.84. Its French peer CAC closed 3.7% up at 3,687.21, whereas the German DAX ended 2.8% up at 6,216.98.

The benchmark indices such as the Nasdaq rose 2.95 percent to close the week at 2,309.8 points, and the S&P 500 soared 2.37 percent at 1,117.51 points.

The Dow Jones industrial average also closed 2.35 percent up at 10,450.64 points. (With Inputs from Agencies)