BENGALURU: India’s blue-chips extended their rally to record highs for a second session in a row on Friday, led by financials, while US Federal Reserve Chair’s rate cut assurance supported sentiment.

The NSE Nifty 50 and BSE Sensex gained 0.69% and 0.51% this week, respectively, posting the fourth straight weekly gain, the best such streak in three months. The benchmarks gained about 3% each in four weeks.

“The momentum in domestic equities can persist till elections as history suggests,” analysts at Ambit Capital said.

Banking is the only sector with relatively attractive valuations compared with the Nifty 50, they said.

Financials-linked indexes such as financial services, banks, public-sector banks and private banks gained between 0.6% and 4% this week.

Moody’s Ratings said on Friday that the outlook for India’s banking system is positive, a day after JP Morgan reiterated it saw no structural challenges to deposit growth in the sector.