BENGALURU: India’s blue-chip indexes Nifty 50 and Sensex hit record highs on Friday, logging third straight weekly gains, as faster-than-expected economic growth boosted demand amid signals the rally will sustain.

The Nifty 50 and BSE Sensex gained 0.57% and 0.82% this week, helped by the rise on Friday, which was their best session in a month.

On the day, Nifty 50 rose 1.62% to close at 22,338.75, notching record highs up for the eleventh session in 2024. The Sensex also hit an all-time high and added 1.72% to 73,745.35.

The rally came after the Indian economy grew 8.4% in the October-December quarter, the fastest pace in six quarters, according to data released Thursday.

Nifty futures started the March series with a market-wide open interest at record high levels, which indicates extraordinary bullish sentiment, Nuvama Alternative and Quantative Research said.

Nuvama expects the Nifty 50 to continue scaling new peaks in March.

The total market capitalisation of all NSE-listed Indian stocks rose to a record $4.69 trillion on Friday, with eight of the Nifty 50 stocks logging new highs.

For the week, seven of the 13 major sectors logged gains.

The broader, more domestically focussed small- and mid-caps fell 0.72% and 1%, respectively, underperforming the benchmarks, on rising concerns over flow of excessive funds.

There is a “clear reallocation” happening from small- and mid-caps to large-caps as investors look for safety, Dipan Mehta, director at Elixir Equities, said. This could support the large-caps further, he said.