Mumbai, Jun 22 (IANS): After two days of correction, the Indian equity markets surged to trade at a new high during the mid-afternoon session on Thursday.

Healthy buying in stocks of banking majors such as State Bank of India, Axis Bank and HDFC Bank lifted the market sentiment.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,351.53 points, traded at a fresh high of 31,465.30 points (at 12.50 p.m.) -- up 181.66 points, or 0.58 per cent, from its previous close at 31,297.53 points.

It has touched a new high of 31,522.87 points during intra-day trade.

The wider Nifty of the National Stock Exchange (NSE) rose by 47.45 points, or 0.49 per cent, to trade at 9,681.05 points.

"Equity benchmarks opened higher, and Sensex and Bank Nifty has hit fresh record highs. Asian market is trading mixed," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

"Top gainers in the NSE were Infosys, Yes Bank, Auro Pharma and Sun Pharma, while top losers were Gail, Lupin, BPCL and ONGC. FMCG and Oil and Gas are trading negative while Tech, Healthcare, Auto and Bank are trading positive."

On Wednesday, the benchmark indices closed on a flat but marginally red note as negative global cues, outflow of funds and heavy selling pressure in automobile, metal, and oil and gas stocks subdued investors' sentiments.

The Nifty fell by 19.90 points, or 0.21 per cent, to 9,633.60 points, while the Sensex closed at 31,283.64 points -- down 13.89 points, or 0.04 per cent.