Banking stocks on Tuesday were in positive territory, pushing NSE's sectoral index, Nifty Bank, to a new record high of 31,850.35. Private as well as public banks were trading higher, with ICICI Bank leading the gains in the afternoon session. The stock climbed over 3 percent to an all-time high of Rs 517.55.
Nifty Bank closed at a record high of 31,718.35, ending 162.45 points higher on Tuesday.
The Indian markets had an eventful day with its benchmark indices Sensex and Nifty 50 breaching old records. However, the ended marginally lower. Sensex closed 67.93 points or 0.17 percent lower at 40821.30, while Nifty was down by 36.10 points or 0.30 percent at 12037.70 points.
In the morning session, BSE's Sensex surged to a high of 41,120.28 while NSE's Nifty 50 broke its old all-time high record after close to 6 months at 12,132. Previously, the index had touched its record high of 12,089 on 3 June.
Sensex, on the other hand, has been testing new scales for a couple of weeks but climbed past 41,000 for the first time on Tuesday.
The surge in Indian stock markets was 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.
During the day, Yes Bank rose 4.55 percent to Rs 67 apiece, Federal Bank by 1.96 percent, IDFC First Bank by 1.49 percent, ICICI Bank by 0.94 percent and IndusInd Bank was up by 0.80 percent.
Public sector banks like State Bank of India (SBI) and Punjab National Bank (PNB) also rose by 0.8 percent each, while shares of Bank of Baroda gained 2.19 percent.