Equity benchmark Sensex surged 318 points to end at its new lifetime high on Thursday, tracking gains in ICICI Bank, L&T and Tech Mahindra.

The 30-share index ended 318.05 points or 0.58 per cent higher at its all-time peak of 54,843.98. The broader NSE Nifty advanced 82.15 points or 0.26 per cent to record 16,325.15.

PowerGrid was the top gainer in the Sensex pack, rallying over 6 per cent, followed by Tech Mahindra, HCL Tech, Titan, L&T, NTPC and ICICI Bank.

On the other hand, Dr Reddy's, IndusInd Bank, Reliance Industries and Axis Bank were among the laggards.

"Domestic equities recovered sharply mainly led by sharp rebound in IT and PSU banks. Additionally, strong buying was seen in midcap and smallcap stocks today after persistent selling for last couple of days," said Binod Modi, Head - Strategy at Reliance Securities.

IT stocks remained in focus and investors continue to lap-up quality IT names as sustained double-digit revenue growth visibility backed by strong deal wins offer comfort, he noted.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with losses.

Equities in Europe were largely trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 0.17 per cent to USD 71.56 per barrel.