The NSE midcap 100 index rose as much as 1.55 per cent, touching a record high of 14,290 points on Monday.
Similarly, the BSE midcap index also hit a record high of 12,060 points.
Investor sentiment turned positive across the globe as upbeat US jobs data last week soothed immediate concerns about the world's largest economy.
“Some of the midcap companies still appear to be not fully priced in, when compared with the large caps, specially some of the stocks which are more domestic focused. But the need for caution is also higher for midcaps,” said Jay Shankar, chief India economist and director, Religare Capital Markets.
Bajaj Finance Ltd jumped as much as 6.18 per cent to hit a record high of Rs 8,715 after the company's board said it would consider sub-division of its shares.
Power Finance Corp Ltd, Cadila Healthcare , Bank of India and Bharat Financial Inclusion were among the top movers in the index.
NSE midcap 100 index is poised to record its third consecutive yearly gain; the index is up 5.08 per cent this year as of Friday's close.