Sensex opened at a fresh record high, crossing its earlier mark of 30,366.4 while the Nifty too breached its earlier mark of 9,450.6
Broader indices gain but fail to cross record marks.
At 9.24 am, Sensex was trading at 30,433.64, 111.52 points higher (0.37%) while the Nifty50 was trading at 9,471.45, up 26.05 points (0.28%).
All BSE sectoral indices led by technology, power, FMCG, IT, consumer durables and healthcare were in the positive terrain.
Tata Steel added 0.82 per cent ahead of its quarterly earnings and on the government's decision to impose anti-dumping duty on some steel products.
The stock of the hour is Bharti Airtel whose scrip was trading at 3.26 per cent on the BSE 30.
Relaince shares also surged 2.31 per cent on the bourse.
The shares of Airtel have witnessed a strong buying trend in the last couple of days.
Dr Reddy's, TCS and ICICI Bank followed suit, being the top gainers in early morning trade.
Asian Paints dipped on the BSE, falling 1.21 per cent.
On the NSE index, Airtel and RIL surged over 2 per cent each, followed by Infratel trading 1.74 per cent higher.
The biggest laggard on the NSE is Asian Paints that fell over 1 per cent.
"Market started the week on a positive note ended higher on Monday after closing in the red for two consecutive sessions earlier and managed to close near all time high supported by pharma, banks and metal sectors while telecom sector seen under pressure during the session," says Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments.
"Nifty managed to close well above short term indicator which is provided by 20 DMA where RSI and MACD are both looking still positive which might attract some more buying into the system in the coming session. The closing of the market seems attractive to bulls which is likely to continue in the coming session as well," he adds.
The market outlook was optimistic with a strong uptrend triggered by robust foreign fund inflows and a better-than-expected earnings report card by some blue-chip companies so far. Overnight gains in Europe and the US markets also fueled the rally.
"Following the mixed performance seen last week, stocks moved mostly higher during trading on Monday. With upward move on the day, the tech heavy NASDAQ and S&P once again climbed to new record closing highs. A significant increase in crude oil prices generated buying interest in some counters," said an Angel Broking Report.
The IIP data has given a definite push to the markets and favourable inflation data on the other hand has significantly contributed to the gains.
"With favorable macro outlook and stable fund flows the bias for the market remains positive in the near term," added the report.
A potential risk the Indian markets face is a dip in monsoons and below average earnings from the first quarter.
However, the market base have solidified over the past few months and moved higher.
According to Vibhav Kapoor, IL&FS, Nifty could tocuh the the 10,000-mark easily. However, he is still unceratin over IT sector and expects underperformance from the Pharma sector, reported CNBC TV 18.
Punjab National Bank and Tata Steel Q4 reports are due today.
Oil prices rise
Oil prices jumped 2 per cent on Monday, hitting its highest in over three weeks. It briefly topped $52 a barrel after Saudi Arabia and Russia said that supply cuts need to last into 2018.
Global benchmark Brent crude settled up 98 cents (1.9%) at $51.82 a barrel, having touched $52.63, the highest since April 21.
On the domestic front, Petrol price was cut by Rs 2.16 per litre and diesel by Rs 2.10 a litre, reversing the four week trend of rising rates.
The rates are applicable from today on back of a marginal 2 paise a litre increase in petrol and 52 paise per litre hike in diesel rates effected from May 1.
Actual reduction in price will be more after taking into account local VAT.
Petrol in Delhi will cost Rs 65.32 a litre from today as against Rs 68.09 previously. Similarly, a litre of diesel will be priced at Rs 54.90 as compared to Rs 57.35.