The Sensex and the Nifty hit another record high with the Sensex topping 28,500 points, while the Nifty hit the 8500 points.
Leading the gainers from the Nifty were metal stocks after China announced an unexpected cut in interest rates. Hindalco zoomed more than 4 per cent, while Tata Steel and Sesa Sterlite were up more than 2 per cent each.
Nifty stocks that lost ground in trade were Cipla, Power Grid Corporation, Sun Pharma and Reliance Industries.
Mid cap stocks also had a good session in trade with notable winners being Hindustan Zinc and Mecleod Russell.
PSU banks which have been rallying in the last few trading sessions continued to find buyers. Leading the set of gainers were Syndicate Bank and Indian Overseas bank.
Meanwhile, markets across Asia saw a sharp rally following an unexpected rate cut from China.