Key barometers were trading in a narrow band near day's high in early afternoon trade. At 12:21 IST, the barometer index, the S&P BSE Sensex, was up 318.80 points or 0.82% at 39,224.64. The Nifty 50 index was up 81 points or 0.69% at 11,771.35.

The Sensex and the Nifty hit record highs in mid-morning trade. Met department's forecast of near-normal monsoon supported buying in domestic shares. Positive cues from other Asian shares also boosted sentiment.

Among secondary barometers, the BSE Mid-Cap index was up 0.25%. The BSE Small-Cap index was up 0.41%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1190 shares rose and 1086 shares fell. A total of 130 shares were unchanged.

Overseas, Asian shares advanced on Tuesday on expectations that Chinese and US trade negotiators would strike a deal soon.

Meanwhile, US-Japan trade talks kicked off and the Bank of Japan chief commented on the risks of increasing trade protectionism for the global economic growth outlook. US President Donald Trump has made it clear he is unhappy with Japan's $69 billion trade surplus with the United States and wants a two-way agreement to address it, the media reported.

Meanwhile, US stocks closed lower Monday, as results from Goldman and Citigroup failed to thrill investors.

Back home, cement shares were in demand. ACC (up 1.26%), Ambuja Cements (up 1.18%) and UltraTech Cement (up 0.20%), edged higher.

Grasim Industries was up 1.77%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most telecom shares rose. MTNL (up 1.36%), Vodafone Idea (up 1.18%) and Tata Teleservices (Maharashtra) (up 0.64%), edged higher. Bharti Airtel (down 0.94%) and Reliance Communications (down 4.94%), edged lower.

Meanwhile, India Meteorological Department (IMD) has issued its first stage operational forecast for the southwest monsoon season (June to September) rainfall for the country as a whole in 2019 of its two stages forecast. The first stage forecast is issued in April and the second stage forecast is issued in June.

The Southwest monsoon seasonal (June to September) rainfall over the country as a whole is likely to be near normal. Quantitatively, the monsoon seasonal (June to September) rainfall is likely to be 96% of the Long Period Average (LPA) with a model error of ± 5%. The LPA of the season rainfall over the country as a whole for the period 1951-2000 is 89 cm.

Weak El Niño conditions are likely to prevail during the monsoon season with reduced intensity in the later part of the season. IMD will issue the second stage Monsoon-2019 Forecast during the first week of June 2019.

On the economic front, India's overall exports (merchandise and services combined) in April-March 2018-19 are estimated to be $535.45 billion, exhibiting a positive growth of 7.97% over the same period last year.

India's merchandise exports increased 11% to $32.55 billion in March 2019 over a year ago. Meanwhile, merchandise imports rose 1.4% to $43.44 billion. The trade deficit for March 2019 narrowed to $10.89 billion as against the deficit of $13.51 billion in March 2018.

As per the data released by the Reserve Bank of India, India's services exports increased 5.6% to $16.58 billion in February 2019 over February 2018. Meanwhile, India's services imports declined 3.3% to $9.81 billion in February 2019. India's services trade surplus jumped 21.7% to $6.78 billion in February 2019 from $5.57 billion in February 2018.