BENGALURU - Indian shares logged modest gains on Monday, marking a third straight session of record highs, helped by a rise in energy stocks.

The blue-chip NSE Nifty 50 index added as much as 0.28% to a new record high of 22,440.90, before settling 0.12% higher at 22,405.60. The BSE Sensex rose 0.09% to 73,872.29.

Both the benchmarks have recorded fresh closing highs for three consecutive sessions after data showed Indian economy grew at its fastest pace in six quarters in October-December.

Meanwhile, Moody's Investor Service significantly raised its 2024 growth forecast for India on Monday to 6.8% from 6.1% earlier.

"The macroeconomic narrative has further strengthened in favour of Indian equity markets," Neeraj Chadawar, head of research at Axis Securities, said, referring to the growth data and Moody's upgrade.

Eight of the 13 major sectors logged gains. Energy and oil and gas jumped about 2% each.

NTPC added 3.54% after the company approved an investment of 171.95 billion rupees ($2 billion) for the Singrauli super thermal power project in Uttar Pradesh.

Power Grid Corporation of India rose 2.72% to hit a new record high. The company approved a 12-billion-rupees fund raise proposal, on the day.

Information technology stocks dropped 0.77% while auto and consumer stocks shed about 0.5% each, capping index gains.

The broader, more domestically focussed small-cap index dropped 0.51%, underperforming the blue-chip indexes, while the mid-caps mirrored benchmarks, even as concerns persist over excessive fund inflows into the segments.

"We suggest investors to reduce exposure in small and mid-caps and raise allocation in large-caps," G Chokkalingam, managing director of research at Equinomics Research, said, citing elevated valuations in the broader markets.

Among individual stocks, JSW Steel lost 2.44% while Tata Steel shed 1.38% after CLSA downgraded both the stocks, citing elevated valuations.

($1 = 82.8900 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sohini Goswami, Sonia Cheema, Janane Venkatraman and Dhanya Ann Thoppil)