The Sensex ended the day with gains of 183 points to end the day at a record 25,880 points, while the Nifty closed the day with gains of 71 points at 7654 points.
Leading the set of Nifty gainers in trade was Larsen and Toubro, which rallied on sustained buying support and ended the day with gains of almost four per cent. Other Nifty stocks that gained ground were Tata Power, Tata Motors and Hero Motor Corp.
Software stocks like Tata Consultancy, Tech Mahindra and HCL Tech finally saw some buying support with both the stocks ending the day higher. However, Infosys and Wipro the other software majors ended the day with losses.
IDBI Bank which announced its fund raising plans was in demand in early trade, but ended the day almost unchanged over Friday's levels.
Select infra and capital good stocks continued to rally with Gammon India locked at the upper end of the circuit filter, while Gammon Infra rallied 7 per cent in trade and HCC rallied a huge 10 per cent in trade.
Mid cap stocks also ended the day with substantial gains with notable winners from the space being IFCI, Sun TV Network, Hindustan Zinc and Jain Irrigation. But, the clear winners in trade were stocks from the real estate pack with Unitech surging a huge 17 per cent, followed by DB Realty, Sobha Developers, Presige Estates and Anant Raj.
Stocks in Europe were trading little changed over Friday's levels, while most of Asia closed higher.