BENGALURU, Sept 16 Reuters Indian shares hit record highs on Monday, underpinned by rising metal stocks on a favorable U.S. rate cut outlook, while Bajaj Housing Finance more than doubled over the issue price in its debut trade.

The NSE Nifty 50 rose 0.11 to 25,383.75, while SP BSE Sensex gained 0.12 to 82,988.78.

Both the benchmarks rose about 0.3 to hit alltime highs during the session.

Nine of 13 major sectors logged gains. Metals gained 0.61, buoyed by a softer U.S. dollar amid rising expectations of a 50 basis point interest rate cut by U.S. Federal Reserve, later this week.

A rate cut would support physical metals demand, as well as put pressure on the dollar, according to analysts. A softer U.S. dollar makes metals cheaper for holders of other currencies, like India.

If the rate cut is in response to concerns about a slowing economy, the positive market effect could be muted. Conversely, if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally further, said Swapnil Aggarwal, director at New Delhibased mutual fund distributor VSRK Capital.

Energy stocks rose 0.8, led by an 8 jump in Adani Green Energy after the company, along with Adani Power won a bid to supply 6,600 MW of renewable and thermal power to India39;s Maharashtra state for 25 years.

Adani Power rose 5.13.

The broader, more domestically focussed small and midcaps rose 0.2 and 0.4, respectively.

Shares of Bajaj Housing Finance debuted at more than double…