Earlier in the session, the Sensex rose as much as 0.51 percent to hit a record high of 25,711.11, surpassing the highest level of 25,644.77 hit on Monday.
The Sensex ended 0.01 percent higher at 25,583.69, while the Nifty closed up 0.02 percent at 7,656.40. The Nifty rose 0.37 percent to hit a fresh all-time high of 7,683.20, crossing the level of 7,673.70 touched on Monday.
"The outlook is positive and there is nothing that warrants a sell-off. However, we advise our clients to be stock specific. We do expect some more upside from the current levels," said Daljeet S Kohli, head of research at brokerage IndiaNivesh.
"Investors will be waiting for the Union budget, which would be the next big trigger and the first documentation of what the new government will be doing," he added.
Read more at Reuters