Bouyant mood on the Dalal Street backed by a 1:1 bonus announcement by TCS saw the Sensex open with a huge positive gap of 11,625 - up 85 points over its previous close.
Buying in other technology stocks and select old index heavyweights led the index cross the 10,700-mark soon.
Buying gained momentum in the noon deals after the Reserve Bank of India left the key rates untouched.
The index zoomed to a high of 11,835, before settling at a record close of 11,822 - up 2.4% (282 points). In the process, the index missed on scoring back-to-back triple century gains by a whisker.
The Nifty gained 92 points to close at 3,517.
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