New Delhi, Jan. 2 -- India's equity markets began the new year confidently, with steady investor demand pushing benchmark indices to fresh records on Friday.

The Nifty 50 index touched an intraday high of 26,340 points, fuelled by a broad-based rally led by metals, power, and automobile stocks, before closing the week at 26,328.55 on Friday. The index gained 1.1% over the week, while the BSE Sensex rose 0.85%, closing at 85,762 points.

The gains were driven by a mix of steady buying and short covering, which helped the benchmarks extend their winning streak for a third consecutive session, experts said. Mid- and small-cap stocks rose alongside the major indices, signalling a wider participation beyond benchmark heavyweights. Strength in...