Equity benchmarks on Thursday recorded fresh lifetime highs after two days of muted trade as banking, finance and infra stocks witnessed robust buying ahead of the new monetary policy decision implemented by the RBI.

A rebounding rupee added to the momentum, with midcap and small-cap gauges outperforming the benchmarks.

The 30-share BSE Sensex opened strong and carried gains through the day to finish 382.95 points or 0.70 per cent higher at 52,232.43. It surpassed its previous closing record of 52,154.13, hit on February 15 earlier this year.

The broader NSE Nifty also soared 114.15 points or 0.73 per cent to end at a record peak of 15,690.35.

The top performer in the Sensex pack was Titan, spurting 6.69 per cent. ONGC, L&T, Axis Bank, Kotak Bank, Bajaj Finance and HDFC Bank followed close suit.

On the other hand, IndusInd Bank, PowerGrid, Bajaj Auto, M&M and Dr Reddy’s were among the losers, shedding up to 2.15 per cent.

Domestic equities remained upbeat, with benchmark indices recording fresh highs, said Binod Modi, Head - Strategy at Reliance Securities.

Rebound in heavyweight financial services supported the market once again, he said, adding that realty followed by FMCG and metals also witnessed sharp recovery.

IT, pharma and auto witnessed some amount of pressure. "Notably, midcap and small-cap stocks continued to outperform broader indices as improved prospects of sustainable earnings recovery continue to attract investors towards this space," he noted.

S Ranganathan, Head of Research at LKP Securities, said the markets remained firmly in the grip of bulls ahead of the RBI policy announcement on Friday, with investors expecting the central bank to continue with its accommodative stance while keeping a watchful eye on Inflation.

Expectations of vaccinations being ramped up coupled with capex programs is likely to improve credit growth, he added.

All BSE sectoral indices ended in the positive terrain. Consumer durables, realty, capital goods, oil and gas, bankex and finance rallied up to 4.44 per cent, while the broader BSE midcap and small-cap indices rose 1.04 per cent each.

Meanwhile, with 1,34,154 fresh cases, India's Covid-19 tally has climbed to 2,84,41,986, while the daily positivity rate has further dropped to 6.21 per cent, the health ministry said on Thursday.

The rupee snapped its three-day losing streak and closed 18 paise higher at 72.91 against the US dollar.

World stocks took a breather ahead of the crucial US payrolls data which will give cues on the economic recovery as well as broader inflation.

Elsewhere in Asia, bourses in Shanghai and Hong Kong ended in the red, while Tokyo and Seoul finished with gains.

Equities in Europe were also trading with losses in mid-session deals.