BENGALURU, July 12 (Reuters) - Indian shares rose to record highs on Friday, led by IT stocks after heavyweight Tata Consultancy Services beat quarterly revenue estimates and as fresh U.S. economic data boosted hopes of rate cut in September.

The NSE Nifty 50 rose 1.14% to a record high of 24,592.20 as of 12:22 p.m. IST, while the S&P BSE Sensex added about 1.1% to an all-time high of 80,893.51 points.

The Nifty and Sensex have gained about 13% and 11%, respectively, in 2024, outperforming emerging market peers and other large global markets except Japan's Nikkei 255, the Nasdaq and S&P 500.

Policy continuity after national election results and growth upgrades have brought back foreign investors to India since the start of June, while domestic mutual fund investors have been on a 40-month buying streak.

Data earlier in the week showed that net mutual fund inflows into Indian shares hit a record high of 406.08 billion rupees (about $5 billion) in June.

"The market seems to be approaching the (national) budget (on July 23) with exuberance and could be dealing with volatility and a correction post budget, if history is a guide," according to Morgan Stanley.

On the day, Tata Consultancy Services, India's top IT services company, rose 6%, after beating revenue expectations.

The gains led to a 4.25% jump in the U.S. rate-sensitive IT index.

IT stocks were also buoyed by rising hopes of a U.S. rate cut in September after consumer prices unexpectedly fell in June.

India's retail inflation data for June is due after market hours later in the day.

Inflation is expected to be close to 5%, in line with the Reserve Bank of India's expectations, but still above its 4% target, central bank chief Shaktikanta Das told local media on Thursday.

($1 = 83.4960 Indian rupees)

(Reporting by Manvi Pant and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)