Indian benchmark equity indices closed higher on Thursday after a two-session drop on Thursday, led by financials on strong business updates and energy stocks on investment plans. Realty extended gains on robust sales volumes.

The BSE Sensex advanced 491 points or 0.69% to settle at 71,847. The broader
NSE Nifty surged 141 points or 0.66% to end at 21,658

High weightage Nifty Financials rose 1.22%, after shedding 1.29% over the last four sessions. Nifty Realty index surged 6.76% to a new record high, led by Sobha, Macrotech Developers, Godrej Properties, and DLF.

Bajaj Finance closed 4.4% higher and was among the top Sensex gainers. The non-bank lender reported a 26% year-on-year increase in new loans and a 35% jump in assets under management in the December quarter, according to a business update.

While investors still expect three US interest rate cuts after the Federal Reserve minutes, a likely delay in the onset of rate cuts could trigger consolidation across global markets, said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.