** India's Nifty 50 .NSEI and Sensex .BSESN hit record highs, each rising about 0.5%, led by financials on prospects of rate cut by Reserve Bank of India

** Expectations of Federal Reserve rate cut in December, improving domestic earnings, eased valuations, benign inflation, strong growth and lower crude price also aiding rally, analysts say

** Nifty 50, Sensex last up 0.1% and 0.2%, respectively, after profit-taking near all-time peaks

** Analysts flag room for consolidation at record-high levels

** Eleven of sixteen major sectors decline, but heavyweight financials .NIFTYFIN climb 0.6%

** Banks .NSEBANK and private banks .NIFPVTBNK add 0.4% each

** Lower borrowing costs support credit growth and profitability for lenders

** Small-caps .NIFSMCP100 slip 0.5% and mid-caps .NIFMDCP100 ease 0.1%

** Ashok Leyland ASOK.NS jumps 5.7% on its unit's merger approval with NDL Ventures NDLV.NS, NDLV up 5%

** Emami EMAM.NS rises 3% after Goldman Sachs projects a strong earnings rebound in the second half of fiscal 2026

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))