Stock benchmarks crossed new milestones on Tuesday, with the Sensex topping 34,000 for the first time and the Nifty hitting a fresh high of 10,515.
The 30-share index crossed the 34,000-mark by jumping 65.07 points, or 0.19%, to 34,005.37.
The gauge had rallied 184.10 points in the previous session on Friday on the back of strong buying by domestic institutional investors.
There was support from all sectoral indices, driven by technology and oil and gas, with gains of up to 0.90%.
The NSE Nifty spurted 22.10 points, or 0.21%, to a new peak of 10.515.10.
Analysts said domestic institutional buying and interest among retail investors amid robust foreign funds inflows lifted mood.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net ₹107.87 crore while domestic institutional investors (DIIs) had also purchased equities worth a net ₹371.53 crore on Friday, as per provisional data.
Asian stocks were mixed ahead of year-end holidays.