Indian equity benchmarks closed higher as the Sensex gained 388 points and the Nifty reclaimed the 26,000 level, supported by strong buying in financial stocks after fresh relief from the Reserve Bank of India. Nifty Bank hit a record 58,900, driven by both PSU and private sector lenders as investors responded positively to improving liquidity conditions. Broader market indices also strengthened, reflecting stability in domestic flows. Analysts noted that banking majors and diversified financials played a decisive role in sustaining upward momentum across the trading session.