BENGALURU: Indian shares logged record closing highs for a second straight session on Friday, driven by state-run companies and energy stocks on hopes of continued capital expenditure spending by the new government.

The NSE Nifty 50 settled 0.29% higher at 23,465.60, while the S&P BSE Sensex added 0.24% at 76,992.77, with both benchmarks also recording their second-straight weekly gain.

The Nifty 50 and Sensex gained 0.75% and 0.39%, respectively, this week.

State-run firms and lenders also added 4.94% and 2.5%, respectively, for the week, on hopes of policy continuity after key ministers were retained in the new government’s cabinet.

The near-term moves for the benchmarks could be only incremental given the sharp rise last week, two analysts noted.

Oil and gas stocks gained 3.41% this week.

Oil explorer ONGC added 5.76% this week, after Jefferies’ analysts said last week’s drop gave an “attractive entry point” and termed it a favourable investment. The Indian government’s announcement on boosting oil output also helped.

Larsen and Toubro climbed 4.4% this week after the infrastructure company won multiple orders.

The IT index was the worst weekly sectoral performer with its 1.62% decline, after gaining 8.6% last week. They jumped 1% on Thursday on renewed expectations that US interest rate cuts were imminent.

The domestically focussed small- and mid-cap indexes jumped 1% and 0.75% on the day, respectively, to hit record highs for a fourth straight session and continued to outperform the benchmarks.

They added 15% and 12.36%, respectively, since their slide last week after the election results on June 4, compared with the Nifty’s 7.22% increase, over the same period.

Ultratech Cement added 7.5% on hopes that policy continuity will bode well for infrastructure-linked companies.

Indian markets will remain closed on Monday, June 17, for a local holiday. Trading will resume on June 18.