Indian shares advanced on Friday aided by broad gains across sectors, with benchmarks nearing record high levels, after economic data from the US boosted bets that Fed may be less hawkish than expected.

The blue-chip Nifty 50 index was up 0.34% at 18,752.55 as of 10:07 a.m. IST, while the benchmark S&P BSE Sensex rose 0.36% to 63,142.60.

Twelve of the 13 major sectoral indexes rose. Broader indexes also extended gains, with the midcap index jumping to a new record high and smallcap index hitting fresh 52-week high levels.

Both benchmarks are less than one per cent shy of all-time highs. Analysts expect the ongoing rally to sustain, after a period of consolidation.

"The consolidation phase will provide investors time to accumulate and be positioned for a rally, which could strengthen over next three to six months," said Kaizad Hozdar, investment advisor at TrustPlutus Wealth.

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Hozdar is bullish on the midcap space, as well as sectors like auto ancillary, non-banking finance companies, consumer durables, capital goods and construction materials.

Among individual stocks, Ashok Leyland rose nearly 4 per cent to a nine-month high after analysts saw benefits from the automaker's expansion plans, focus on margin improvement and pricing discipline.

Titagarh Wagons and Ramkrishna Forgings gained over 3 per cent and 7 per cent, respectively, after a consortium of both companies won contract from Ministry of Railways worth ₹12,227 crore.

Piramal Pharma jumped over 5 per cent after global brokerage Jefferies reiterated "buy" citing scope for margin expansion in fiscal year 2024.

Wall Street closed higher on Thursday after data showed retail sales unexpectedly rose in May, indicating strength in consumer spending in the world's largest economy.

The weekly jobless claims were above expectations, signalling a tight labour market, which may delay further rate hikes by the US Federal Reserve.

Meanwhile, Asian markets also advanced after Bank of Japan maintained its ultra-easy monetary policy.

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