Benchmark indices closed at a new record high, as heavyweights like Infosys, HDFC Bank and HDFC contributed significantly to the gains.
The Sensex closed at a new record of 41,859.69 points, while the Nifty too closed at a new record high of 12,329.55 points.
Shares in Infosys led gainers, after a spectacular set of results. The shares ended the day higher by almost 5 per cent, as investors continue to buy into the stock.
However, Yes Bank shares slumped after investors worried on the bank's fund raising abilities. Apart from this worries over corporate governance also weighed on the stock.
Shares in L&T Finance Holdings rallied, after a foreign brokerage firm upgraded the stock to buy. The shares ended almost 4 per cent higher in trade.
Media shares too saw good buying interest with TV Today Network and TV 18 shares rallying. Among the Nifty losers were UPL, Bharti Airtel, TCS and Eicher Motors.
Meanwhile, Crude oil price has steadied, but, analysts remain worried that simmering tensions in the Middle East, could spark a fresh rally.