The BSE benchmark, the Sensex was trading 198.81 points or 0.75% higher at 26,836.92 points after touching all-time high of 26854.08 points, while the NSE's Nifty was trading 62.45 points or 0.79% higher at 8016.80 points at 10.20 am IST, after touching all-time high of 8022.70 points.
The economy grew at its fastest pace in more than 2 years in June quarter. The GDP grew at 5.7%, data released on Friday showed.
Experts believe corporate earnings are likely to double over the next 4 years. "Near term, our view is that the Indian equity market would be range bound and may correct around 5% over next 2 months. However, we continue to be bullish on the Indian market and believe that buying on dips is a particularly compelling strategy. Our bullishness is driven by our view that the earnings have turned the corner and we will see earnings doubling over the next 4 years. We think market returns could mirror earnings growth," BofA-ML said in a note.
Extending its winning-spree for the seventh session, the 30-share barometer spurted by 174.58 points, or 0.65 per cent, to trade at a new life-time high of 26,812.69, surpassing its earlier record of 26,674.38 reached on August 28.
In the previous six sessions, the gauge has rallied by 323.96 points.
Among sectoral indices, the BSE Capital Goods (1.96%), BSE Consumer Durables (1.84%) and BSE Metal (1.34%) were trading in the green. Among individual stocks, L&T (2.62%), Hero Motocorp (2.57%) and GAIL (2.30%) were among the major gainers.
Sentiments turned bullish as buying activity gathered momentum after India's economic growth rate improved to two-and-half year high of 5.7 per cent in the April-June quarter, brokers said.
Larsen & Toubro, Hindalco, State Bank of India (SBI), Maruti Suzuki India, ICICI Bank, Reliance Ind, HeroMoto, Bharti Airtel, Dr Reddy, Bajaj Auto, Coal India, Tata Motors, Tata Consultancy Services (TCS), Tata Steel, Infosys and Wipro were among prominent gainers that supported the indices to hit record highs.
Among other Asian markets, Hong Kong's Hang Seng shed 0.15 per cent, while Japan's Nikkei gained 0.19 per cent in early trade today.