Mumbai, Aug 27 (IANS): Healthy buying in metal and pharma stocks, as well as positive Asian cues, lifted India's equity markets to close at record high levels on Friday.

Initially, the two key indices opened flat, but soon sold off in the first few minutes of trade. They later recovered on the back of healthy gains in metals and pharma stocks.

Globally, Asian shares were set for their best week since February on Friday as Chinese markets cheered a burst of central bank liquidity.

However, European stocks were flat on Friday ahead of US Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium that could offer hints on the timeline for slowing of its bond purchases programme.

Sector-wise, capital goods, power, metals and healthcare stocks gained the most.

Consequently, the S&P BSE Sensex ended the day's tarde at 56,124.72, higher by 175.62 points or 0.31 per cent from its previous close.

Similarly, the NSE Nifty50 too closed higher, rising to 16,705.20, up by 68.30 points or 0.41 per cent from its previous close.

"Nifty reversed early weakness to end at record high level. Nifty opened flat, but sold off in the first few minutes of trade," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"After making an intra-day low at 9.30 am, it began to rise gradually. Broader markets outperformed as the BSE Midcap index closed with a gain of 1.04 per cent while the smallcap index rose 0.93 per cent," he added.

Geojit Financial Services' Research Head Vinod Nair said: "Indian benchmark indices remained in the positive territory even as global markets traded mixed as investors awaited announcements from the Jackson Hole Economic Symposium.

"Mid and small-cap stocks continued their outperformance while recovery in the metal and pharma sectors guided them to be the sectoral leaders. Globally, markets are awaiting comments from the Fed chair on the US economy and clarity on its future policy changes."