Indian stock market index Sensex today extended gains to the seventh day in a row and also closed at a record high. The benchmark index 136 points higher at 40,301.96, a record closing high, overtaking June 3rd closing high of 40,267. During today's session, Sensex also set a new intra-day record of 40,483 at day's high. The broader Nifty settled 0.46% higher at 11,945.

A slew of positive cues including better-than-expected Q2 results, rate cut by US Federal Reserve and easing trade war tensions have boosted overall investor sentiments, says Vinod Nair, head of research at Geojit Financial Services.

Infosys ended 3% higher was up 4% after heavyweight said that it received no evidence to support the allegations in a whistleblower letter from last month.

Shares of Yes Bank ended 0.75% lower today amid a lot of volatility after falling as much as 10% in early trade. On Friday, Yes Bank reported a bigger-than-expected loss for the second quarter on Friday, as asset quality worsened and provisions swelled.

Metal stocks Tata Steel and Vedanta rose 2-3%, extending their recent rally after better-than-expected China manufacturing data. Optimism over US-China trade talks also boosted metal stocks.

Auto stocks Hero MotoCorp and Maruti Suzuki fell over 2% after their recent run- up.

Some analysts say that Indian markets may correct in the near term due to the recent sharp gains.

"Since the run-up in the market was too fast in a short span of days, there is every likelihood of a swift correction in the near term," said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Ajit Mishra, vice president for research at Religare Broking, said: "After a decent run up over the last few sessions, some consolidation cannot be ruled out in the near term. The on-going corporate earnings season and global developments are likely to dictate the market trend in the coming sessions."

The global backdrop remained positive. Asian and European shares today ended higher amid growing optimism over US-China trade talks and upbeat US job data. On Friday, US stocks set a closing record for the third time in five days.