Both benchmark indices were driven by strong gains in IT, teck, oil and gas, pharma and banking shares amid earnings optimism.
Steep volatility in the markets has made fund managers cautious, awaiting opportunities to deploy the cash.
Strong gains in metal, energy, auto and power shares lifted the key indices to new highs.
In line with Sensex, the broader indices also saw hefty losses. Large cap index tumbled 0.79 per cent, midcap 0.87 per cent and smallcap 0.57 per cent.
The second fortnight of September saw Rs 3 lakh crore of time deposits, something unique, followed by liquidation of Rs 1.2 lakh crpre of these right after.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
Experts say lending rates won't come down significantly,as banks are grappling with NPAs
The BSE Sensex jumped 70.42 points to end at 34,503.49, while the broader NSE Nifty finished at 10,651.20, up 19 points.
After last Monday's massive fall in the Indian markets, a lot of quality stocks have fallen significantly.
Among Sensex constituents, HCL Tech suffered the most by diving 2.26 per cent, followed by HDFC shedding 2.10 per cent.
The broader NSE Nifty scaled a high of 10,856.55 before closing up by 55.90 points, or 0.52 per cent
This is the highest closing for both the indices since May 15.
The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65.
HDFC Bank was the top loser in the Sensex pack, falling 2.99 per cent, followed by Adani Ports at 2.87 per cent.
The wider Nifty hit a low of 10,033.35 before finishing at 10,044.10, down 74.15 points or 0.73 per cent.
The NSE Nifty after shuttling between 10,397.60 and 10,279.35 points, ended 47 points, or 0.45 per cent lower at 10,301.05.
In the Sensex pack, M&M was the biggest loser, tumbling by 6.66 per cent, followed by TCS dropping 4.14 per cent.
Though Hero still leads by a wide margin in annual and monthly sales, for the first time, Honda has considerably bridged the sales gap with the Pawan Munjal-led firm in April lagging only by 12,134 units
Morgan Stanley expects RBI to cut rates sharply rather than "dribble down".
The BSE Sensex gained 104.63 points to end at 33,147.13, while the broader Nifty spurted 48.45 points to finish at 10,343.80.
The broader NSE Nifty closed 1.25 points, or 0.01 per cent down at 10,564.05.
The BSE Sensex spurted 130.00 points to end at 35,980.93, while the broader NSE Nifty advanced 30.35 points to 10,802.15.
Markets end in red; bluechips struggle to keep pace.
'To ensure you remain with the better performers, you need to consistently monitor your MF portfolios and weed out the non-performers, even if they are from a star fund manager or a fund house with a sound record.'
Coal India fell the most by 2.58 per cent among Sensex scrips, dragging the index into the negative zone.
The broader NSE Nifty dipped below the 10,200-mark to hit a low of 10,180.25 before ending at 10,195.15, down by 165 points, or 1.59 per cent.
Sustained FII inflows and fresh spell of buying by domestic institutional investors fuelled the rally
Stocks such as ICICI Bank, Axis Bank, State Bank of India, Bank of Baroda and HDFC Bank are among the top banking picks of analysts for 2017. A decline in cost of funds and treasury gains are expected to help stabilise their net interest margins
The broader Nifty ended on top of 9,800 again.
Covering-up of pending short positions on expiry of the July derivatives contracts and a strengthening rupee propped up the markets at high levels
Investors booked profits in recent gainers
Sun Pharma was the biggest gainer in the Sensex pack, advancing 1.79 per cent.
BSE Midcap and BSE Smallcap indices hit their fresh lifetime highs for the second day in a row
During the current financial year, 25 companies have raised Rs 28,220 crore through IPOs
The NSE Nifty cracked below the 10,800-mark to hit a low of 10,753.05 intra-day, before closing at 10,762.45 with a loss of 59.40 points, or 0.55 per cent.
The NSE Nifty, which dipped below the key 10,800-mark to touch a low of 10,755.40, bounced back on late buying to close at 10,817.70, up 9.65 points, or 0.09 per cent.
The broader NSE Nifty index too finished lower by 4.80 points, or 0.05 per cent, at 10,632.20.
HDFC Bank has ensured that no bank will be able to match them in the near future without bleeding on margins.
Banking and real estate stocks rise up to 5% on further rate-cut hope.
The session was marked by volatility and stock-specific action, even as the overall sentiment remains risk-averse, brokers said.
