Mumbai, Mar 16 (IANS): Healthy buying in banking and finance stocks lifted the key Indian equity indices on Friday, with the BSE Sensex crossing the 38,000-mark for the first time since September.

The NSE Nifty50 also touched the 11,400-level after a gap of six months.

According to analysts, strong cues from the major European and Asian markets also strengthened the domestic investor sentiments. Further, a healthy inflow of foreign funds was a major factor behind the surge in the Indian stocks on Friday.

The Sensex closed at 38,024.32, higher by 269.43 points or 0.71 per cent, from the previous close of 37,754.89 points.

During the day, it touched a high of 38,254.77 and a low of 37,760.23 points.

The Nifty50 ended higher by 83.60 points or 0.74 per cent at 11,426.85 points.

Investment by the foreign institutional investors stood at Rs 4,323.49 crore on Friday while the domestic institutional investors sold stocks worth Rs 2,130.36 crore.

The top gainers on the Sensex were Kotak Mahindra Bank, ONGC and Power Grid, while the major losers were Hindutan Unilever, Yes Bank and Bharti Airtel.