The Sensex ended 118 point higher at 22,876 while Nifty closed at 6,840, up 25 points. At their day's high, the indices hit fresh peak of 22,901.65 and 6,861.60 respectively.
During the April series, Nifty rose nearly 3 per cent while Sensex was up 2.7 per cent.
FII's bought Indian shares worth of Rs. 163 crore on Tuesday, provisional exchange data showed, continuing their buying spree for the third straight session.
Capital goods stocks extended their gains to the fourth day. L&T rose 2.2 per cent to Rs. 1,376, taking its four-day gains to over 9 per cent. Bharat Heavy Electricals rose 1.5 per cent today to Rs. 189.
There was some profit-taking in oil & gas stocks after their outperformance yesterday. BPCL lost 1.6 after rising over 4 per cent yesterday. Cairn India, which reports earnings today later in the day, fell 3.1 per cent to be the biggest loser among Nifty stocks.
Yes Bank shares ended 1.7 per cent higher at Rs. 441. The private lender, which announced its Q4 results earlier in the day, reported a net profit of Rs. 430 crore vs expectations of Rs. 410 crore.
Other major gainers among banking stocks included Bank of Baroda, Kotak Mahindra Bank, PNB, up between 2 per cent and 3.3 per cent.