The BSE benchmark Sensex hit a fresh record high of 53,293 while the Nifty 50 index touched a new all-time high of 15,970 led by HDFC and Asian Paints. The Nifty50 index is only 35 points shy of touching 16,000-mark.
The BSE Mid- and SmallCap indices hit new peaks, advancing up to 0.5 per cent, in intra-day trade.
Asian Paints was the top gainer in the Sensex pack, rising around 3 per cent, followed by Titan, PowerGrid, HDFC, M&M and Tech Mahindra.
On the other hand, HCL Tech, Bajaj Auto, Tata Steel, ICICI Bank and NTPC were among the laggards.
In the previous session, Sensex rallied 363.79 points or 0.69 per cent to finish at 52,950.63, while Nifty surged 122.10 points or 0.77 per cent to 15,885.15.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,539.88 crore on Monday, as per provisional exchange data.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, fundamental support to the bulls has been coming from good corporate results.
"Now the macros are turning very positive with the declining fiscal deficit, rising tax collections, and now the excellent performance in exports which shot up by 48 per cent in July. The PMI at 55.3 indicates a potential sharp turnaround in economic activity.
"This can embolden the bulls to take Nifty beyond 15,950 early in August unless FIIs turn massive sellers at those levels," he said.
Elsewhere in Asia, bourses in Tokyo and Hong Kong were trading with losses in mid-session deals, while Shanghai and Seoul were positive.
Meanwhile, international oil benchmark Brent crude advanced 0.07 per cent to USD 72.94 per barrel.
