The purchasing in index heavyweights Infosys and Reliance Industries amid foreign fund inflows helped equity benchmarks close higher on Tuesday.
The confidence was further boosted by a strong trend in Asian indices and a record April GST collection.
The 30-share BSE Sensex increased for the eighth day in a row, rising 242.27 points or 0.40 percent to close at 61,354.71. It increased by 373.8 points or 0.61 percent over the day to reach 61,486.24.
The larger NSE Nifty finished at 18,147.65, up 82.65 points or 0.46 percent.
The largest gainers among the Sensex companies were Tech Mahindra, NTPC, Tata Steel, Maruti, Infosys, Power Grid, Larsen & Toubro, Axis Bank, Titan, Reliance Industries, Wipro, and Mahindra & Mahindra.
Those who lagged behind included Sun Pharma, UltraTech Cement, Tata Motors, Kotak Mahindra Bank, Bajaj Finance, State Bank of India, and Nestle.
Seoul, Japan, Shanghai, and Hong Kong had positive closing prices in Asian markets.
European stock markets were mostly trading lower. The US stock market declined slightly on Monday.
Finance Ministry statistics published on Monday indicated that GST collection in April increased by 12% yearly to over Rs 1.87 lakh crore, reaching an all-time monthly high.
According to a monthly poll released on Monday, manufacturing operations in India increased even more in April and reached a four-month high, driven by strong new business growth, moderate pricing pressure, stronger overseas sales, and better supply-chain conditions.
According to exchange statistics, foreign institutional investors (FIIs) purchased shares of stock worth Rs 3,304.32 crore on Friday.
The US Federal Reserve's interest rate decision is now being anticipated by the markets.
Due to Maharashtra Day, equity markets were closed on Monday.
The BSE benchmark increased by 463.06 points or 0.76 percent on Friday to close at 61,112.44. To end at 18,065, the Nifty had increased by 149.95 points, or 0.84 percent.
Brent crude, the benchmark for all other crude oils, fell 0.38 percent to $79.03 a barrel.
