Mumbai: Both the key market indices on Monday surged over 2 per cent led by gains made by public sector banks (PSBs) and financial sector stocks, following a slew of measures announced by Finance Minister Nirmala Sitharaman last week.
The BSE Sensex jumped over 792.96 points to close at 37,494.12, while the Nifty traded 228.50 points higher to top the 11,000-point mark at 11,057.85.
The Finance Minister on Friday announced the capital infusion of Rs 70,000 crore in PSBs. The most crucial announcement was the roll-back of the tax surcharge on foreign portfolio investors (FPIs), which is aiding the market rally on Monday.
Read more:Gold touches new high over Rs 40000 per 10gm
Both benchmarks Sensex and Nifty have logged their best single-day gains since May 20.
Indian equities also managed to keep within bounds the global negative sentiment emanating from intensified trade war rhetoric between the two major economies, the US and China.
Yes Bank topped the gainers' list on the Sensex. It was followed by HDFC, Bajaj Finance, HDFC Bank, ICICI Bank, L&T, SBI, Axis Bank and Kotak Bank -- rallying up to 5.24 per cent.
On the other hand, Tata Steel, Sun Pharma, Hero MotoCorp, Vedanta, RIL, Tata Motors, Maruti Suzuki and Bajaj Auto fell up to 2.01 per cent.
"Indian markets opened higher following policy stimulus announcement by Finance Minister on Friday with a raft of measures," said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.
Asian stocks were battered after US President Donald Trump fuelled the trade war with China by imposing more tariffs on Chinese goods, traders said.
Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended significantly lower.
Later in the day, Trump said that the US and Chinese trade negotiators would "very shortly" resume talks in what he described as a breakthrough in the two economic superpowers' trade war.
"Domestic he markets recovered from the day's low in afternoon session as news of China's willingness to negotiate on US-China trade raised hopes of traders with added to the already positive domestic sentiments," Solanki said.
Equities in Europe were trading a tad higher in their respective early sessions.
Meanwhile, the Indian rupee depreciated 21 paise to 71.87 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, rose 0.92 per cent to USD 59.34 per barrel.
