Mumbai, Nov 7 (IANS): Despite weakness in the Indian economy, the equity markets continued to hit record levels in expectation of a revival. Nifty Realty index jumped by 0.88 per cent after Finance Minister Nirmala Sithraman, announced a Rs 25,000 crore fund relief fund for distressed homebuyers.

The benchmark Sensex closed at record level while the Nifty closed above the critical 12,000 mark over improved global cues. The Sensex closed 183.96 points higher at 40,653.74 while the Nifty closed 50.05 points higher at 12,016.10.

"Reforms and earnings are the market drivers, the measures to support realty sector augers well for the sector to outperform. The proposed measure will help to start the recovery of stalled projects and can see a ripple effect in NBFCs, banks and cement sector," said Vinod Nair, Head of Research, Geojit Financial Services.

Besides the global markets have also gained after China and US agreed to a phased removal of tariffs that has brightened hope for a trade deal.