Broad-based gains were elusive, but select stocks such as Reliance and HDFC twins kept the market largely in positive territory and help post record close for the Sensex and Nifty.
The Nifty closed with a gain of 46.50 points at 11,738.50, while the Sensex advanced 203 points to end the session just below 38,900.
Reliance was the top contributor with 50 percent of Nifty gains, followed by HDFC twins and Maruti Suzuki. From the broader market, Nifty Bank closed flat at 28,270 after hitting the intra-day record high of 28,389 in the opening move.
The midcap index was the biggest underperformer amongst headline indices. It closed 55 points lower at 19,718, keeping market breadth in favour of declines. The NSE advance-decline ratio was at 2:3 during close.
Jet Airways saw a trade in 32-point range before closing 13 points higher at 295.45. Negative move in the stock post disappointing results was offset by the reports of Boeing returning $200 million to the company.
Another stock that saw a reaction to the news was IDBI Bank. It saw a downside move post exchange notification of the bank issuing up to 14.9 percent stake via preferential issue to LIC. But, most losses were regained post comments by IDBI Bank MD and government officials.
In the futures market, Nifty 11,800 Call option saw an addition of 4 lakh shares in the open interest with premium moving 71 percent higher. And, Nifty 11,700 Put option added more than 16 lakh shares in the open interest with premium slipping 55percent.
Nifty August Futures expanded its premium to 19 points from Monday’s level of 13 points. The long build-up was seen in JSW Steel, Hindalco, Godrej Consumer Products and Vedanta, whereas PC Jeweller, GAIL, Bank of Baroda and Union Bank saw a short build-up.
Asia markets were broadly higher following yet another day of record highs on Wall Street, as the US and Mexico announced a new trade agreement.
The Nikkei 225 ended the day largely flat, closing at 22,813.47, with the country's shipping sector up by 2.3 percent.
South Korea's Kospi closed in positive territory at 2,303, up 0.2 percent, with industry heavyweight Samsung Electronics rising 0.5 percent. The ASX 200, meanwhile, was up 0.6 percent to close at 6,305 as the market down under continued its recovery from last week's political turmoil.
Vitamin maker Blackmores' stock soared as it ended the trading day up 11.5 percent after the company earlier reported 18.6 percent rise in its full-year profit.
Over in the greater China markets, Hong Kong's Hang Seng index lost some of its earlier gains, but closed with a gain of 0.3 percent. Mainland Chinese stocks, meanwhile, closed in relatively cautious territory. The Shanghai composite ended the trading day down by 0.1 percent at 2,778, while the Shenzhen composite closed largely flat around 1,498.