BENGALURU: Indian shares logged their second straight week of gains, with the benchmark Nifty 50 index hitting record highs in all five sessions, buoyed by a rise in heavyweight financials.

The Nifty 50 and BSE Sensex gained 0.78% and 1%, respectively, for the week, despite falling 0.02% each on Friday.

The broader, domestically-focussed small-caps shed 0.12% this week, while mid-caps added 0.30%, both underperforming the benchmarks.

“Strong corporate profitability, robust domestic inflows, and steady macroeconomic data, including the acceleration of business activity have offset any concerns of valuations and sustained the rally in domestic equities,” said Aishvarya Dadheech, chief investment officer at Fident Asset Management.

Dadheech expects the rally to continue leading up to India’s general elections later this year, driven by hopes of policy continuity.

Eight of the 13 major sectors posted weekly gains. Financials and banks added about 1% each.

Financials are still in a “sweet spot” due to attractive valuations, especially in state-owned banks and strong earnings outlook, Dadheech said.

Consumer stocks advanced 1.53% after dropping 5.5% over the last four weeks, dragged by lacklustre quarterly results.

Realty stocks jumped 4.08%, leading sectoral gains for the week, with DLF climbing 4.16% due to land purchases.

IT stocks shed 1.12% for the week, pulled down by the losses in the first three sessions ahead of the minutes from the Federal Reserve’s latest monetary policy meeting.

“While a delay in US rate cuts could weigh on the sector, evidence of macroeconomic resilience in the world’s largest economy augurs well for the sector,” said Pankaj Murarka, chief investment officer at Renaissance Investment Managers.

Energy index snapped a 16-week winning run, dragged by oil marketing companies, including Bharat Petroleum Corp, on concerns over sustainability of refining and marketing margins.