Heavy foreign investment inflows helped shares rise nearly one percent on Monday.
The 30-issue Mumbai Stock Exchange index ended up 0.7 percent at 5,571.37 points after rising 1.6 percent last week.
"The index should trade between 5,200 and 5,600 till election uncertainties are out of the way," said Falguni Nayar, a director at brokerage Kotak Securities.
National elections start on April 20.
Tata Motors Ltd, the nation's biggest truck maker, gained 1.4 percent to 473.05 rupees while Bajaj Auto Ltd, the second-biggest motorcycle maker, rose 2.4 percent to 892.55 rupees.
Vehicle sales have surged in the past three months, riding an economic boom and three-decade low interest rates.
Shares in Indian software services exporters, which derive about 70 percent of their revenues from the United States, slid on worries the rupee's rise could pressure margins.
Infosys Technologies Ltd, India's second-biggest exporter, shed 1.6 percent to 5,216.40 rupees while Wipro Ltd, the third-largest, eased 1.2 percent to 1,140.60 rupees.
Government bonds ended steady ahead of the end of the fiscal year on March 31. The yield on the 10-year benchmark was little changed at 5.1562 percent.