The Sensex ended the day higher by 320 points, after surging past the 24,000 points mark to hit a lifetime high of 24,068 points.
The Nifty also hit a new life time high and closed the day higher by 94 points, rallying past the 7100 points mark.
Today's gains were led by frontline IT stocks including TCS, Infosys and Wipro. All of these stocks rallied more than two per cent in trade after not participating in the sharp rally witnessed in the last few weeks.
The star from the Nifty pack was clearly, Bharat Heavy Electricals which gained as much as 10 per cent in trade on reports of a stake sale by the government.
Larsen & Toubro which has seen a sustained rally in the last few weeks ended higher by 2 per cent after the company won new orders worth Rs 1137 crore in April, May 2014.
Oil and gas stocks were in heavy demand after reports of a diesel price hike. Stocks that gained were ONGC (4 per cent), BPCL and HPCL.
Select mid cap stocks saw buying interest at lower levels with GMR gaining nine per cent, Jubilant Foods seven per cent and Syndicate Bank also ending higher by six per cent.
Among the few Nifty losers in trade were pharma stocks like Dr Reddy's and Sun Pharma.
Meanwhile, most of Asia ended the day with gains led by almost a two per cent rally the Japanese Nikkei and gains in the Hong Kong's Hang Sang and the Seoul Composite.