New Delhi, May 20 : Domestic equity benchmark indices erased all its losses they witnessed in the previous session to close sharply higher on Friday. China's cutting of its key lending rate also supported the indices back home. In a bid to stimulate economic activity hit by the latest outbreak of the Covid, the Chinese central bank cut the five-year prime rate by 15 basis points to 4.45 per cent. All the Nifty sectoral indices were sharply higher on Friday, with Nifty realty, media, and metal rising the most. They rose 4.2 per cent, 4.5 per cent, and 4.2 per cent, respectively. On Friday, Sensex closed at 54,326 points, up 1,534 points or 2.9 per cent, whereas Nifty was at 16,266 points, up 457 points or 2.9 per cent. On Thursday, Indian equity benchmark indices took a sharp cut in line with weakness in the US markets. /IANS