Benchmark indices continued to gain ground as liquidity from both Foreign Institutional Investors and domestic institutions continued to drive stock prices higher.
Markets across Asia also ended the day higher as strong jobs data in the US led to a rally across the region.
The US Jobs data showed an addition of 255,000 jobs in the US for July 2016, as against expectations of just 180,000.
The Sensex ended the day with gains of 62 points at 28,139 points, while the Nifty ended the day higher by 28 points.
Telecom stocks were having a bad day with stocks like Bharti Airtel and Idea, both among the top Nifty losers in trade.
Some stocks reacted to their results. Andhra Bank dropped a huge 5 per cent, following a poor set of numbers, while Union Bank fell 6 per cent following quarterly numbers. Both these stocks had reported a poor set of earnings.
Meanwhile, the rupee was last trading at 66.85 and was more or less steady in trade. All eyes are now on the RBI's Monetary Policy to be released later on Aug 9.