“Sentiments were buoyed by OPEC’s decision to sustain production levels and the subsequent sharp fall in crude prices. Markets are hoping for a rate cut in the RBI policy meeting next week,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities.

Similarly, the NSE Nifty barometer topped the 8,600 mark for the first time to hit lifetime high of 8,617. It finally settled 94.05 points, or 1.11 per cent, higher at a record close of 8,588.25. Thus, it surpassed its earlier closing peak of 8,530.15 touched on November 24.

Banking was the front-runner ahead of RBI monetary policy review next week. SBI led gains by rising over 5 per cent. Other banking stocks including ICICI Bank, Axis Bank and HDFC Bank also rose.

Globally, Brent crude prices fell to trade at over four-year low of $71.21 per barrel in Asian trade. This boosted shares of OMCs, paint makers and airline companies.

Sectorally, BSE Banking index gained the most by rising 2.87 per cent, followed by Auto 1.95 per cent, Realty 1.65 per cent and Consumer Durables 1.16 per cent among others.

Mixed closing at other Asian markets and a lower opening in European markets also influenced trading sentiments here. Foreign investors bought shares worth net Rs 389.73 crore on Thursday, as per provisional data.