Benchmark Sensex rose by 443 points to close at a new record high while Nifty settled above the 24,100 mark on Monday on buying in banking and IT shares in line with gains in Asian and European markets.
The 30-share BSE Sensex settled higher by 443.46 points or 0.56 per cent at an all-time high of 79,476.19.
During the day, the barometer soared 528.27 points or 0.66 per cent to 79,561.
The broader Nifty rose by 131.35 points or 0.55 per cent to close at a fresh lifetime high of 24,141.95.
Intra-day, the index hit a high of 24,164, just 10 points short of its lifetime high of 24,174 hit on Friday.
Among Sensex shares, Tech Mahindra, UltraTech Cement, Bajaj Finance, Hindustan Unilever, Tata Consultancy Services, JSW Steel, Infosys, HDFC Bank, Tata Motors and ICICI Bank were the biggest gainers.
NTPC, State Bank of India, Larsen & Toubro, Sun Pharma, IndusInd Bank and Axis Bank were among the laggards.
In Asian markets, Seoul, Tokyo and Shanghai settled higher.
"The domestic market sustained its upward momentum, with a reduction in US PCE inflation raising hopes for a rate cut by the US Fed in September.
"This optimism contributed to the strong performance of IT stocks," said Vinod Nair, head of research, Geojit Financial Services.
Global oil benchmark Brent crude climbed 0.51 per cent to $85.43 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 23.09 crore on Friday, according to exchange data.
