Sensex continued trading higher in the afternoon deals, with both Sensex and NIfty hitting their all-time highs tracking global markets.
In another development, NSE shut trading in cash and F&O segment due to a technical glitch on Monday morning but later resumed trading after over 2 hours. It shut down trading in the futures & options (F&O) segment at 9:55am.
In intra-day trade, Sensex rose as much as 408 points to hit the record high of 31,768, surpassing its previous milestone of 31,522 hit on June 22 while Nifty gained as much as 116 points to hit 9772, surpassing the last high of 9,709 hit on June 6
At 2:40 pm, the S&P BSE Sensex was trading at 31,751, up 391 points, while the broader Nifty50 was ruling at 9,761, up 96 points.
In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap were in line with the frontline indices up 0.6% and 0.4% respectively.
TCS, Tata Motors, Bharti Airtel, Lupin and SBI gained the most on BSE Sensex while ITC, Tata Steel, M&M and Dr Reddy's lost the most on the index.
Reliance Communications gained 5.7% after it presented a long-term debt reduction plan to lenders, which includes sale of real estate, under-sea cable assets and its DTH business.
AU Small Finance Bank was trading at Rs 516.85 at 10:43 IST on BSE, a 44.37% premium over its initial public offer price of Rs 358 on its debut today, 10 July 2017.
Asian stocks rallied on Monday, lifted by Wall Street's strong performance late last week, while the US dollar extended gains made after much stronger than expected June employment data.
The markets in Europe opened higher, extending gains seen across the US and Asia. The pan-European Stoxx 600 was trading firm, with all sectors and major bourses trading in positive territory.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.15% while Japan's Nikkei rose 0.5%.
Australian stocks were up 0.4% and South Korea's KOSPI added 0.2%.
On Friday, Wall Street closed higher after US jobs growth beat forecasts. However, a lag in wage increases led investors to bet wage data would limit the extent of the Federal Reserve's hawkishness.
The Nasdaq led gains with a 1 percent jump, while the S&P 500 added 0.6% and the Dow Jones Industrial Average rose 0.4%.