On Tuesday, shares of ICICI Bank climbed over 3 percent to a new all-time high of Rs 517.55. It is the stock's second consecutive trading session of gains and also was a major contributor to Nifty 50's gains in the day along with Reliance Industries Limited (RIL).
Between 3 June, the last time Nifty achieved its all-time high and Tuesday, ICICI Bank has been the second biggest contributor to the index at 132 points. RIL made a contribution of 181 points.
In early morning trade on Tuesday, Nifty touched a new all-time high of 12,132.45, before losing steam.
Among sectoral indices, banking stocks on Tuesday were in positive territory, pushing Nifty Bank to a new record high of 31,850.35.
The surge in Indian stock markets is a reflection of improved risk appetite among traders around the global on positive progress in US-China trade deal.
Leading negotiators from Washington and Beijing held another phone call on Tuesday morning to discuss "core issues," said China's Ministry of Commerce in an online statement. Asian stocks were trading high in afternoon trade on Tuesday.
Wall street's record closing also aided the gains. In the US, the S&P 500 added 0.8 percent to close at 3,133.64 while the Nasdaq Composite gained 1.3 percent to end the trading day at 8,632.49.