Equity benchmark indices Sensex and Nifty scaled fresh record highs on Tuesday, extending their bull run for the fifth straight session on the back of gains in banking and IT stocks.

The BSE gauge Sensex settled with gains of 259.33 points or 0.55 per cent at a new closing high of 47,613.08.

Starting off on a bullish note, the 30-share index went on to hit its all-time intraday high of 47,714.55 before paring some gains.

Likewise, the NSE barometer Nifty ended higher by 59.40 points or 0.43 per cent at a fresh closing high of 13,932.60. Intraday, the 50-share Nifty marked its all-time record at 13,967.60.

"Financials helped key Indices to close the day well into positive territory with the broader markets seeing demand for gas stocks. The day also witnessed up moves in names that are not usually seen frequently amongst gainers as savvy investors were seen scouting for value in a Bull Market," S Ranganathan, Head of Research at LKP Securities said.

On the Sensex chart, IndusInd Bank, Axis Bank, Tech Mahindra, HDFC, ICICI Bank, HCL Tech, HDFC Bank, SBI and ITC were prominent gainers.

On the other hand, Nestle, NTPC, PowerGrid, Dr Reddy, Reliance Industries, ONGC and Mahindra & Mahindra were among the losers.

Sectorally, banking index rallied 1.41 per cent, followed by finance (1.06 per cent) and IT (0.65 per cent).

Of the 19 sectoral indices, 12 ended in the red and seven in the green. Among the top losers, BSE metal, power and energy slid up to 1.32 per cent.

In the broader market, all midcap, smallcap and largecap indices underperformed the benchmark Sensex.

"It was a volatile day, started well but edged lower losing all the gains, in the end, the markets recovered much of the losses and closed with a small upside," Vinod Nair, Head of Research at Geojit Financial services said.

Finance stocks were the major contributors in the upside but broader market underperformed the main benchmark. Selling was seen in auto, pharma and metal sectors among others too.

"A major part of the global developments like stimulus and Brexit deal are priced in the market. In the absence of major domestic or global events expected in the near-term, the market will focus on the upcoming Q3 earnings and stock-specific updates," Nair said.

Continued buying by FPIs remains a dominant factor for market rally, Binod Modi, Head- Strategy at Reliance Securities said.

According to exchange data, foreign portfolio investors (FPIs) purchased shares worth a net Rs 1,588.93 crore on Monday.

"Given soft monetary policy of global bankers, weak dollar, improved prospects of corporate earnings recovery and consistent improvement in COVID-19 recovery rate will continue to remain as key tailwinds for strong FPIs participation in domestic markets in the near to medium term," Modi said.

The daily new coronavirus infections in India dipped below 20,000 for the third time this month taking the COVID-19 caseload to 1,02,24,303, while the recoveries crossed 98 lakh, according to the Union Health Ministry data updated on Tuesday.

The ministry also stated that six persons who returned to India from the United Kingdom have tested positive for the new mutated strain of coronavirus. It, however, said that vaccines will work against new COVID variants and there was no evidence so far that new variant found in the UK increases severity of disease.

Elsewhere in Asia, most bourses closed with gains following positive global trends after hopes that the US Senate will clear the much-awaited coronavirus relief bill.

The global oil benchmark Brent crude futures rose 0.88 per cent to USD 51.40 per barrel.

On the forex market front, the rupee settled 7 paise higher at 73.42 against the US dollar.