The Sensex closed at a new record closing above the 27,000 points mark at 27,019 points, while the Nifty closed at 8083 points.
Leading the set of gainers from the Nifty were Bharti Airtel, Ambuja Cement and ACC. ICICI Bank which had rallied initially gave up gains and ended the day with losses.
Metal shares fell in trade after coal block allocation cancellations. Hindalco and Jindal Steel fell, while Tata Steel also ended the day with losses.
Cipla was in the limelight and ended the day 5 per cent higher after the company announced a launch of anti-asthma inhaler in Germany and Sweden.
Heavyweights, Reliance Industries and ONGC were also among the gainers. Mid cap stocks had a quiet day in trade and the mid cap index ended the day almost flat. Jain Irrigation and Apollo Tyres were among the top gainers from the mid cap space.
IT stocks also saw buying interest with NIIT Tech and Tech Mahindra ending the day higher.
Meanwhile, most of Europe was having a quiet session in trade. The German DAX, French CAC and the UK's FTSE were trading flat.