The Bombay Stock Exchange's benchmark Sensex rose for the sixth straight trading session on Tuesday to close above the 19,000 mark for the first time in two months.
The Sensex gained 177 points or 0.9% to close at 19,120.8 amidst strong buying by foreign institutional investors (FIIs).
The broader Nifty at the National Stock Exchange closed the day at 5,736 with a similar 0.9% gain at 49 points above the previous close.
FIIs pumped in a net of Rs 481 crore on Tuesday taking their total net investment in March to Rs 4,151.5 crore.
Tuesday's rally was however limited to large-cap stocks as the BSE mid-cap index remained flat, and the small cap index fell by 0.4% during the day.
"Lack of participation by the non-index stocks in the current rally is a cause for concern," said Amar Ambani, head of research at India Infoline.
India was the biggest gainer among all major markets in Asia on Tuesday. It was also ahead of European markets till the time of going to press.