India's benchmark indices breached record levels, with the Sensex hitting the 37,000 points mark for the first time on the back of gains in heavyweights like HDFC Bank and Larsen and Toubro.
The Nifty too hit a record of 11,172 points for the first time, but, pulled back on gains thereafter.
However, by 3.10 pm, the markets had erazed some gains, though the Sensex was set to close at new record closings. The Sensex was still up 92 points, while the Nifty was up 23 points in trade.
Among the sectoral indices, the Public Sector Banking space, FMCG, infrastructure and auto names were trading strong, while weakness was seen in the pharmaceuticals space. Shares in Maruti fell a huge 4 per cent, after the company's results did not meet expectations.
Sun Pharma, Bharti Infratel and Tech Mahindra were among the losers in trade. Asian markets were trading higher, led by strong gains on Wall Street.
The Dow Jones closed with gains of 172 points, after reports that Trump and the EU commission President had agreed to work together to lower tariffs.
Meanwhile, the rupee was more or less steady in trade at 68.76, up 11 paise over Wednesday's close. Most analysts are cautioning investors as the markets have now risen sharply and a sell off is likely.