Meanwhile, Finance Minister Arun Jaitley will meet captains of Indian industry to elicit their views on the budget, which is likely to be presented in the first week of July.
Construction and engineering giant L&T rose by 9.02 pct after the company announced better-than-expected Q4 results last week-end.
Major gainers were ONGC (22.67 pct), Tata Steel (17.95 pct), Hindalco Ind (14.35 pct), Hero Motocorp (14.15 pct), Gail India (11.44 pct), SSLT (9.66 pct), BHEL (8.46 pct), Axis bank (7.51 pct), SBI (7.48 pct), Tata Power (6.69 pct), HDFC (6.67 pct), HCL (6.23 pct), Tata Motors (5.56 pct), Coal India (5.35 pct), Maruti Suzuki (5.31 pct), Reliance Ind (5.13 pct), Bajaj Auto (4.75 pct) and Bharti Airtel (3.43 pct).
Kishor Ostwal, CMD, CNI Research Ltd, said, "Markets made new highs post Modi win. First of all, the policy paralysis has come to an end as Modi got the 284 seats which was above 272 required as FII started pumping in more money. The Indian economy by now had hit the bottom and recovering from the big blows of last 7 years."
"Retail investors have now started entering market and participation is rising. This all now clearly suggest that India has entered the mother of all bull markets now and we can see Sensex crossing 41,000 in next 2 to 3 years. For immediate call in our opinion Nifty will try to cross 7,600 and 7,700 in settlement. Next week could remain bullish," he added.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services, said, "The Indian equity markets observed new highs and records in the current trading week. ONGC was one of the major stocks which came into limelight in last two trading days and grew to record high. Investors are keen to invest in the Indian equity markets with a hope of strong reforms and strong budget by the new government."
"In the coming week there are some important data release such as IIP Data for the Indian economy, retail sales & PPI for US economy, and all data are expected to improve in comparison to the previous data release so this would again help the markets to grow," he added.
Among the S&P BSE sectoral indices, realty rose 12.34 pct followed by metal 11.50 pct, PSU 11.09 pct, Oil & Gas 10.44 pct, capital goods 9.56 pct, power 7.42 pct, bankex 4.92 pct and auto 4.77 pct, while only IT index finished in the red.