The blue-chip NSE Nifty 50 index closed 0.92% higher at 17,234.15 and the benchmark S&P BSE Sensex climbed 0.90% to 57,852.54.
India's stock market has outperformed Asian peers so far this year, as analysts pointed to signs of a domestic economic recovery and concerns linger over tightening regulations in China.
In Mumbai trading, Reliance Industries and Tata Consultancy Services were among the top boosts to the Nifty 50, gaining 1.2% and 3.3%, respectively.
The Nifty IT index settled 1.67% higher.
The Nifty FMCG index rose 1.64%, its seventh straight session of gains, as Dabur India Ltd and United Breweries Ltd added 2.3% and 1.3%, respectively.
Mahindra and Mahindra closed 2.3% lower after the automaker said it expects vehicle production at its automotive division to reduce by 20%-25% this month due to semiconductor shortages.
Debt-laden telecom firm Vodafone Idea Ltd closed 17.2% higher, following a media report https://www.businessinsider.in/business/telecom/news/vodafone-idea-shares-spike-after-promoter-kumar-mangalam-birlas-meeting-with-indias-telecom-minister/articleshow/85861279.cms that its billionaire promoter Kumar Mangalam Birla met with Indian government officials to discuss the health of the telecom sector.
Shares of Shree Cement Ltd rose 6.5% and were among the top performers on the Nifty index.
(Reporting by Rama Venkat in Bengaluru; Editing by Ramakrishnan M.)