Mumbai | Benchmark equity indices Sensex and Nifty closed higher for the third straight session on Friday, following gains in index majors L&T, ITC and Maruti and a record rally in the US markets after the Federal Reserve indicated three rate cuts this year.

After falling in early trade, markets staged a smart recovery. The 30-share BSE Sensex climbed 190.75 points or 0.26 per cent to settle at 72,831.94. However, a sharp correction in IT and tech stocks limited the rise. During the day, it jumped 474.43 points or 0.65 per cent to 73,115.62.

The NSE Nifty advanced 84.80 points or 0.39 per cent to 22,096.75.

From the Sensex basket, Sun Pharma, Maruti, IndusInd Bank, Titan, ITC, Tata Motors, Larsen & Toubro and JSW Steel were the major gainers.

On the other hand, Infosys, Wipro, HCL Technologies, Tata Consultancy Services, Tech Mahindra and Bajaj Finserv were among the laggards.

The BSE IT index fell 2 per cent.

In Asian markets, Seoul, Shanghai and Hong Kong settled lower, while Tokyo ended in the positive territory.

European markets were trading on a mixed note. Wall Street tapped fresh record peaks on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,826.97 crore on Thursday, according to exchange data.

Global oil benchmark Brent crude dipped 0.22 per cent to USD 85.59 a barrel.

The BSE benchmark jumped 539.50 points or 0.75 per cent to close at 72,641.19 on Thursday. The NSE Nifty climbed 172.85 points or 0.79 per cent to 22,011.95.