(fxcue news) - Indian benchmark indexes Sensex and Nifty hit new record highs on Thursday, mirroring gains in global markets as investors looked past high core U.S. inflation number and shift their focus to producer price inflation and weekly jobless claims data due later in the day for fresh hints regarding the size of future rate cuts by the Federal Reserve. After August's inflation report matched expectations, markets are now more confident the Fed will cut its rate by 25 basis points next week and reserve the potential for more aggressive action later this year in case there is further deterioration in the job market. CME Group's FedWatch Tool points to rates being at least a full percentage point lower by the end of the year. It is believed that weaker economic growth will lead both the European Central Bank (ECB) and the Bank of England to cut interest rates at a faster pace than previously expected. The ECB is expected to cut its baseline interest rate from 4.25 percent to 4 percent later today, but the focus will be more on comments by ECB President Christine Lagarde to confirm if further rates are to follow in October and December. The recent decline in oil prices to near three-year lows and expectations of increased foreign inflows into domestic equities also provided the much-needed sentimental boost to the markets. The benchmark 30-share BSE Sensex ended the session up 1,439.55 points, or 1.77 percent, at 82,962.71, after having hit a new record high of 83,116.19 during the intra-day trade amid massive buying across sectors. The broader NSE Nifty index hit a new high of 25,433.35 before finishing at 25,388.90, up 470.45 points, or 1.89 percent, from its previous close. Among the top gainers in the Nifty pack, Grasim, Shriram Finance, NTPC, Bharti Airtel and Hindalco surged 3-4 percent.