BENGALURU: Indian shares hit record highs on Monday, underpinned by rising metal stocks on a favorable US rate cut outlook, while Bajaj Housing Finance more than doubled over the issue price in its debut trade.

The NSE Nifty 50 rose 0.11% to 25,383.75, while S&P BSE Sensex gained 0.12% to 82,988.78.

Both the benchmarks rose about 0.3% to hit all-time highs during the session.

Nine of 13 major sectors logged gains. Metals gained 0.61%, buoyed by a softer US dollar amid rising expectations of a 50 basis point interest rate cut by US Federal Reserve, later this week.

A rate cut would support physical metals demand, as well as put pressure on the dollar, according to analysts.

A softer US dollar makes metals cheaper for holders of other currencies, like India.

“If the rate cut is in response to concerns about a slowing economy, the positive market effect could be muted. Conversely, if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally further,” said Swapnil Aggarwal, director at New Delhi-based mutual fund distributor VSRK Capital.