"Indian equity markets closed at record highs, as a rally was fuelled by a strong handover from the Wall Street, apart from hopes of a rate cut by the central bank on the back of yesterday's inflation numbers", said Dhruv Desai, Director and Chief Operating Officer of Tradebulls. But key indices touched fresh intra-day high levels.
Among Nifty stocks, Aurobindo Pharma was the top gainer, up 5.87 per cent, followed by Gail India, ACC, NTPC and Bharti Infratel. Nifty IT slipped as much as 1.05 per cent with shares of TCS (down 1.93 per cent) and Wipro (down 1.53 per cent) being the top losers.
The Sensex closed at 32,020.75, down 16.63 points, or 0.05 per cent.
Banking stocks gained after government data on Friday showed that WPI inflation had declined 0.9 per cent in June.
Bank Nifty has turned green trading at 23931 level, up by 47 points.
The BSE market breadth was bearish with 1,681 declines and 1,009 advances.More news: Kashmiris Condemning Amarnath Terror Attack is Real 'Kashmiriyat', Says Jitendra Singh
The stock has fallen nearly 5 percent on an year-to-year basis.
US stocks rose overnight and Treasuries fell as oil prices extended gains for a fourth straight session and investors digested new economic data on jobless claims and producer prices.
BSE IT bled the most, losing 0.95 per cent in trade.
Indian shares look set to open largely unchanged on Friday after Tata Consultancy Services, India's largest software services exporter, reported first-quarterly results largely below consensus estimates, despite steady growth across industries and robust volumes from major markets, driven by good clients additions across revenue brands.
Japan's Nikkei rose 0.22 per cent while Hong Kong's Hang Seng index was up 0.03 per cent. Shanghai Composite fell 0.22 per cent in early trade.
In the European market, the pan-European STOXX 600 index rose 0.1 per cent while euro zone bluechips were little changed, Reuters reported.