Investors say the Reserve Bank of India's policy review on April 1, where it is widely expected to keeps rates unchanged, and general elections due by May would act as the next key catalysts for markets.
Overseas investors have helped underpin gains, with net purchases in shares reaching $2.53 billion so far this month, according to SEBI data.
Whether Indian equities can sustain the record-setting rally this month is becoming a big source of debate in markets .volatility is expected on Thursday which marks the expiry of March equity derivative contracts for India.
Things are improving, macro economic turnaround is underway, pre-election wave can drive market to even higher levels, but I will watch global markets, U.S. short-term rates from here onwards.
The Nifty rose as much as 0.57 per cent to an all-time high of 6,627.45, while the Sensex gained 0.53 per cent to a lifetime high of 22,172.20.Both the indexes ended 0.18 per cent higher each.
Larsen & Toubro rose 2.2 per cent, while Tata Motors ended higher 2.8 per cent.Metals and capital goods stocks led gains, with the BSE metal index up 2.2 per cent on hopes for economic stimulus in China, which may result in higher international metal prices.Tata Steel gained 2.1 per cent, Jindal Steel And Power Ltd rose 3.2 per cent, and Sesa Sterlite ended 4.2 per cent higher.
Oberoi Realty ended 8.7 per cent higher after earlier rising as much as 17.6 per cent after the real estate developer emerged as the highest bidder for an industrial land parcel being sold by Tata Steel Ltd with a final bid of Rs. 1155 crore.
Shriram City Union Finance gained 0.6 per cent after Morgan Stanley initiated coverage on the company with an "overweight" rating.
However, exporters fell on fears of margin erosion as the rupee hit a fresh 8-month high.Among pharmaceutical exporters, Lupin fell 2.8 per cent and Cipla Ltd lost 1.1 per cent.In software stocks, Infosys fell 0.2 per cent and Wipro Ltd ended 0.5 per cent lower.