Mumbai, Sept. 17 -- The domestic equity benchmarks extended gains for a second straight session on Wednesday, lifted by optimism around India-U.S. trade talks and hopes of a U.S. Federal Reserve rate cut later in the day. The Nifty closed above the 25,300 mark, aided by strength in PSU banks, IT and energy stocks. Broader markets also remained firm, with the BSE Midcap index advancing for the eighth session in a row.

The S&P BSE Sensex rallied 313.02 points or 0.38% to 82,693.71. The Nifty 50 index added 91.15 points or 0.36% to 25,330.25. Over the last two trading sessions, the Sensex has gained 1.11% and the Nifty has added 1.04%.

State Bank of India (up 3.02%), Bharat Electronics (up 2.36%) and Reliance Induistries (up 0.60%) boosted...