Benchmark stock indices hit all-time highs in morning trade today, with strong performances by sectors such as information technology and automobile.
The Sensex breached the 75,000 mark, while Nifty hit a high of 22765.30.
Ahead of earnings, shares of IT majors such as Tech Mahindra, HCL Technologies and Infosys were among the biggest gainers today. Among auto stocks, Hero MotoCorp and Tata Motors outperformed others.
The movement in the Indian stock market is in sync with those of US indices, which too have been hovering around all time highs on expectations of upcoming relief from high interest rates.
Ahead of presidential elections, the US Federal Reserve has repeatedly said it plans to cut rates this year, sending stocks into uncharted territory.
One of possible reasons for the upmove could be the lower volumes seen in trade today due to the Gudi Padwa holiday.
The markets will take their cues from US consumer price inflation data due later this week, with a correction likely if it continues to rise and further fireworks expected if it falls.
Realty stocks were also doing well today, with the Nifty Realty index up 1.9%. Shares of Shobha and Godrej Properties were up as well.
Nifty Smallcap and Midcap indices also performed well.
JSW Steel, Kotak Mahindra Bank, Reliance Industries and Larsen & Toubro were among the laggards.
In Asian markets, Tokyo and Hong Kong were trading in the positive territory while Seoul and Shanghai quoted lower.
Wall Street ended on a mixed note on Monday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 684.68 crore on Monday, according to exchange data.
Global oil benchmark Brent crude climbed 0.19 per cent to USD 90.55 a barrel.
"The new records set by the market yesterday confirm the bullish market undertone. A healthy and desirable trend in the market movement yesterday was the outperformance of the largecaps. This trend is likely to continue," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The BSE benchmark jumped 494.28 points or 0.67 per cent to settle at a new closing peak of 74,742.50 on Monday.
The NSE Nifty climbed 152.60 points or 0.68 per cent to 22,666.30.
(with inputs from PTI)