India's main stock index, the Sensex, has broken the 13,000 milestone and reached its best-ever finish on Monday.
Indian shares have bounced back after sharp falls in May and June
At close in Mumbai the 30-share index reached 13,024.26 - a gain of 117.45 points, or 0.91%, on last week's close.
Shares were boosted by solid earnings from several key banks and technology firms, but analysts said investors may now take profits.
The index has now risen 36% in 2006, and has shrugged off a sharp slide in June to below 9,000.
"Corporate earnings growth has been beyond expectations," said Krishna Kumar Karwa, managing director with Emkay Shares and Stock Brokers.
The Sensex, which reached a previous best of 12,994 points on 17 October, was boosted on Monday by aggressive buying by funds of stock in Infosys Technologies.
The record level comes ahead of a Reserve Bank of India review of interest rates.
The bank is expected to keep a key short-term rate unchanged.