The Sensex ended the day higher by 377 points, at a new record closing of 25,396 points, while the Nifty closed the day higher by 109 points at a new record high of 7583 points. Among the top gainers in trade were ONGC which rallied a huge 10 per cent. Other notable gainers in trade were also from the oil and gas space with Reliance and Gas Authority of India rallying.
Software stocks were once again weak in trade with TCS and Wipro falling, while Infosys dropped one per cent after yet another top level management exit from the company.
Other Nifty losers were Sterlite and Hindalco.
Banking stocks once again found buyers with ICICI Bank, IndusInd Bank and Yes Bank leading gainers from the amongst the private sector lenders.
Mid cap stocks also had a good day in trade with Bata India and Tata Global Beverages among the leaders.
Real estate stocks also rallied on hopes of approval of tax sops for real estate investment trusts. Prestige Estate, Brigade Enterprises and Unitech were among the gainers.
Sugar stocks continued to gain ground on hopes of a hike in import duty for sugar. Shree Renuka, Bajaj Hindustan and Dhampur Sugars were among the gainers.
Meanwhile, markets in Europe were trading marginally higher while most of Asia ended the day mixed. The German DAX, French CAC and the UK's FTSE were all trading with gains.