Indian stock markets progressed this week as fear regarding the euro zone debt crisis relieved to some extent after China guaranteed the globe that it was not selling European bonds.

Markets also saw good buying activity after last week's sell-off.

The overall reaction of the stock market got a boost by reconciliation between Mukesh Ambani and Anil Ambani. In identical statements on May 23, Ambani brother said that they were confident of producing an environment of co-operation and collaboration after ceasing a 2006 non-compete deal.

During the week, the Sensex surged 417.45 points to end at 16,863.06. The Nifty gained at 135.4 points at 5066.55 in the same period.

"Globally, the mood has improved in the last three days. The Indian market should hold its recent lows at least for some time," said Satish Menon, director of operations at Geojit BNP Paribas Financial Services.

Broader indices also closed the week on a positive note. The BSE midcap index surged 1.01% and the BSE smallcap index gained 0.94%.

The major gainers on the Sensex were Rel Power (12.8 percent), Reliance Infra (6.9 percent), Tata Motors (5.6 percent), TCS (4.5 percent) and ITC (4.4 percent).

Among major losers were Grasim (24.7 percent), ACC (4.3 percent), Tata Steel (2.4 percent), Bharti Airtel (2.1 percent) and SBI (1.4 percent).

The sectors that remained in the limelight during the week were realty (4.1 percent), oil and gas (3.4 percent), IT (3.2 percent), and healthcare (2.3 percent).

According to data with the Securities and Exchange Board of India (SEBI), foreign institutional investors sold scrips worth $805.59 million.

The Chinese Shanghai composite index ended at 2,655.77 points, up 2.8%, while the Hang Seng of the Hong Kong Stock Exchange ended at 19,766.71 points, up 1.13% up.

The Japanese Nikkei closed the week on a flat note at 9,762.98 points, down 0.22%.

European stocks also gained during the week.

London's FTSE remained up by 2.48% to end at 5,188.43. Its French peer CAC ended 2.46 percent higher at 3,515.06 points while the German DAX closed at 5,946.18 points, up 2.01 percent.

US markets too put an end to the losing spree.

For the week, benchmark indices such as the Nasdaq gained 1.26 percent to close Friday at 2,257.04 points, and the Standard and Poor's 500 was up 0.16 percent at 1,089.41 points.

The Dow Jones industrial average, however, closed 0.56 percent lower at 10,136.63 points. (With Inputs from Agencies)