The Sensex ended the day higher by 105 points, while the Nifty closed higher by 40 points at 6641 points - another lifetime high. IDFC led gainers in trade with the stock ending higher by almost 5 per cent on sustained buying.
State Bank of India also ended the day significantly higher after a leading foreign brokerage firm upgraded the stock to a "buy".
The other notable gainers from the Nifty was Bharti Airtel which jumped almost 4 per cent on value buying.
PSU banking stars were the clear out performers in trade today on hopes that a Narendra Modi led government will boost hopes for the banking sector. IDBI Bank, Punjab National Bank and Indian Overseas Bank all gained more than 3 per cent in trade.
Shares in India Cements which fell after the Supreme Court proposed a ban of Chennai Super Kings from IPL recovered lost ground in late trade to end the day higher.
Pharma and IT stocks continued to exert pressure on the Nifty with notable losers being Sun Pharma, Dr Reddy's Labs, and Ranbaxy labs being among the Nifty losers.
Mid cap stocks also saw some buying interest with the index ending higher. However, Biocon and JSW Energy were the few stocks that lost ground from the mid cap space.
Meanwhile, most of the Asian markets ended the day with gains led by the Japanese Nikkei and the Taiwan Weighted.