BENGALURU: Indian shares logged record closing highs on Thursday, amid a global rally after softer-than-expected US inflation data bolstered expectations that the Federal Reserve would cut rates sooner rather than later.

The NSE Nifty 50 settled 0.33% higher at 23,398.90, recording an all-time closing high for the third time in four sessions. The S&P BSE Sensex added 0.27% to finish at an all-time high of 76,810.90.

Both the benchmarks climbed 0.7% in early trade to hit record highs before trimming some gains, in part as state-run banks snapped a six-session post-elections results rally.

US consumer prices were unexpectedly unchanged in May, lifting bets of a rate cut in September to 61% from 53%, according to the CME FedWatch tool.