The Sensex and the Nifty ended the day sharply higher led by gains in State Bank of India and Oil and Gas stocks.
The Sensex ended the day higher by 131 points at a new record closing of 28,177 points, while the Nifty ended the day higher at a record of 8430 points. Leading the set of gainers apart from SBI and oil and gas stocks were Hero Motor Corp and Bharti Airtel. Nifty stocks that lost ground in trade were ICICI Bank and Coal India.
Tata Motors jumped a huge 4 per cent after the company's stock was upgraded by leading brokerages in the country, following its results.
PSU Banks had a good trading session with stocks taking cues from SBI and rallying. Canara Bank, Andhra Bank and Bank of Baroda were among the winners.
Realty stocks also saw some traction with stocks like D B Realty and Anant Raj among the gainers.
Meanwhile, markets across Europe were trading sharply lower on worries over recession in the Japan. The Japanese Nikkei fell sharply following data showing that the country was in recession. The German DAX, French CAC and the UK's FTSE were all trading lower following the data.