The S&P BSE benchmark Sensex ended the session at a new high of 23,905.60 on sustained capital inflows amid weak European cues.
Easing April inflation data and strengthening of the rupee against the dollar also boosted the sentiment.
But the trading was volatile as investors remained in wait and watch mode ahead of the election results tomorrow.
The 30-share BSE index Sensex ended at 23,905.60, up 90.48 points or 0.38 per cent and the 50-share NSE index Nifty ended at 7,123.15, up 14.4 points or 0.2 per cent.
Among BSE sectoral indices, consumer durables, power and oil & gas indices were the star-performers and were up 1.52 per cent, 0.97 per cent and 0.95 per cent, respectively. On the other hand, realty, capital goods and metal indices fell the most by 1.11 per cent, 0.9 per cent and 0.71 per cent, respectively.
Tata Power, NTPC, ONGC, GAIL and HUL were the top five Sensex gainers, while the top five losers were Bajaj Auto, Hindalco, SSLT, Wipro and Dr Reddy's.
European stocks were down as investors weighed earnings results and awaited reports on US jobless claims and industrial output. Asian stocks ended on a mixed note.