Next week marks the start of quarterly earnings reports, while India will also release consumer price inflation data, in the midst of a five-week elections.
FII's have been heavy buyers of Indian shares, buying $173.50 million worth of shares on Wednesday, totalling $4.7 billion so far in 2014.
The DII investors are much less subdued in their buying. Life Insurance Corp was spotted selling IT and bank shares after a recent rally, said four dealers at brokerages that handle trades on behalf of India's largest state-run insurer.
Indian stock market performance in recent times has been driven by hopes of a favorable election outcome. In my view, India's ability to take control of current account problem has helped the economy.
The Sensex rose as much as 0.4 per cent to its life-high of 22,792.49, while the Nifty rose 0.33 per cent to a record 6,819.05.
Profit-taking hit Infosys, which fell 1.6 per cent on caution ahead of March-quarter results due on April 15.
Sun Pharmaceutical Industries fell 2.3 per cent on profit-taking after rising 7.1 per cent in the previous session.
Among other top companies ITC Ltd fell 1.2 per cent while ICICI Bank lost 1 per cent. Bharat Heavy Electricals Ltd gained 2.7 per cent, Axis Bank ended 1.3 per cent higher.
The Adani group companies surged on what traders attribute partially to the view that the group would perform well should the Bharatiya Janata Party led by Narendra Modi win elections, given perceptions of close links.Adani Enterprises Ltd surged 22.9 per cent, marking its biggest single day ever, Adani Power rose 1 per cent while Adani Port and Special Economic Zone ended 5.2 per cent higher.
Crompton Greaves Ltd rose 6 per cent after earlier marking its highest level since July 2011, adding to Wednesday's 9.3 per cent gain, on hopes the power equipment maker will report a turnaround in earnings during the January-March quarter.
Tata Motors gained 2.4 per cent after earlier rising to a record high of 435 rupees after Citigroup raised its target on the stock to 486 rupees from 421 rupees, citing the outlook for the Indian automaker's luxury unit Jaguar Land Rover.