The wider 51-scrip Nifty of the National Stock Exchange (NSE) touched a new record intra-day high, and a new closing high level last seen on March 4, 2015.
Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE touched its new 52-week-high level in 24 months.
Besides, investors' sentiments were lifted by a strong rupee, fresh inflow of foreign funds and healthy buying which was witnessed in capital goods, banking and consumer durables stocks.
The NSE Nifty closed the day's trade with a gain of 152.45 points or 1.71 per cent, at 9,087 points after touching a new high of 9,120.6 points.
The BSE Sensex, which opened at 29,437.23 points, closed at 29,442.63 points -- up 496.40 points or 1.71 per cent from the previous close at 29,946.23 points.
The Sensex touched a 52-week high of 29,561.93 points and a low of 29,356.05 points during the intra-day trade.
The BSE market breadth was tilted in favour of bulls -- with 1,696 advances and 1,140 declines.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 1.43 per cent, and the small-cap index rose by 1.19 per cent.
On the last trading day, March 10, the benchmark indices had inched up on the back of strong rupee, fresh inflow of foreign funds and positive global cues.
The NSE Nifty gained 7.55 points or 0.08 per cent to 8,934.55 points, while the barometer Sensex was up by 17.10 points or 0.06 per cent to 28,946.23 points.
"Markets surged higher on Tuesday on the back of the massive BJP victory in the UP (Uttar Pradesh) assembly elections. The Nifty touched new life highs of 9,120.6 before finally closing above the 9,000 levels for the first time in history," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Major Asian markets have ended on a mixed note, while European indices like CAC 40 and DAX traded lower."
Anand James, Chief Market Strategist, Geojit Financial Services, said: "Market held on to its gains, and did not look daunted by the record peaks at which it saw itself on the back of electoral victory for the ruling party which should give its reform measures more momentum. The pause at the top was not surprising with the US FOMC's (Federal Open Market Committee) rate decision expected later in the week.
"Coming on the heels of a strong IIP (Index of Industrial Production), firm WPI (Wholesale Price Index) has all but ensured that the RBI rate cut bets are mostly off. On the other hand, these figures will also mean that markets will look at Q4 more expectantly."
The Wholesale Price Index (WPI) data was released during the day's trade, and this was followed by the Consumer Price Index (CPI) figures which were released after the end of market hours.
Official data showed that the annual rate of inflation based on wholesale prices (WPI) rose to 6.55 per cent in February, and the annual retail inflation (CPI) rose to 3.65 per cent.
The Indian rupee strengthened by 79 paise to 65.82 against a US dollar from its previous close of 66.61 to a greenback.
In terms of investments, provisional data with exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 4,087.89 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 1,519.94 crore.
Commenting on the sector-specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: "IT, banking, pharma, auto, oil-gas and textile sector stocks traded with firm sentiments, while aviation, FMCG, cement and power sector stocks witnessed healthy buying."
"Telecom sector stocks witnessed some selling pressure due to profit booking."
Sector-wise, the S&P BSE capital goods index augmented by 472.58 points, followed by the banking index, which rose by 456.92 points, and the consumer durables index, which edged up by 333.19 points.
On the other hand, the S&P BSE metal index fell by 34.48 points and the telecom index inched down by 7.25 points.
Major Sensex gainers on Tuesday were: ICICI Bank, up 5.99 per cent at Rs 286.75; Hindustan Unilever (HUL), up 4.54 per cent at Rs 913.80; Larsen and Toubro (L&T), up 4.40 per cent at Rs 1,557.55; Asian Paints, up 3.81 per cent at Rs 1,069.10; and HDFC, up 3.68 per cent at Rs 1,423.05.
Major Sensex losers were: Bharti Airtel, down 0.95 per cent at Rs 361.35; Axis Bank, down 0.88 per cent at Rs 511; Coal India, down 0.76 per cent at Rs 295.55; and Gail, down 0.59 per cent at Rs 376.20.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)