Appreciating rupee against the dollar and fresh buying by domestic institutional investors added to the momentum
Market benchmark Sensex surged by around 277 points to close at more than five-month high of 35,934.72 today on heavy buying in energy, capital goods, power and banking stocks following positive leads from global markets and a strengthening rupee.
The broad-based NSE Nifty too went past the 10,800-mark as investors shifted focus on corporate earnings from trade tensions.
The BSE Sensex rallied for the second day by rising 276.86 points or 0.78 per cent to settle at 35,934.72, the highest closing level since January 31, when it had closed at 35,965.02. The NSE Nifty ended 80.25 points or 0.74 per cent higher at 10,852.90.
Asian markets mostly closed higher and European stock markets advanced in opening trade, tracking gains on Wall Street on Friday after a strong jobs data for June allayed fears of impact of the US-China trade dispute.
Appreciating rupee against the dollar and fresh buying by domestic institutional investors added to the momentum, brokers said.
Investors were also looking forward to the quarterly results of IT majors TCS and Infosys that will kick-start the earnings season later this week, they added.
Infosys was up 1.14 per cent at Rs 1,299.15, while TCS was trading lower by 1.34 per cent at Rs 1,887.65.
Other IT counters like HCL Technology, Tech Mahindra and Wipro gained up to 1.68 per cent.
The 30-share BSE Sensex opened on a strong footing at 35,835.10 and maintained its upward trend to hit the day's high of 35,977.37.
It finally ended at 35,934.72, up 276.86 points, or 0.78 per cent.
The gauge had gained 83.31 points in the previous session on Friday.
The Nifty finished the day at 10,852.90, showing a gain of 80.25 points or 0.74 per cent after shuttling between 10,860.35 and 10,807.15.
This is the highest closing since June 13, 2018 when it had closed at 10,856.70.
DIIs bought shares worth a net of Rs 1,480.82 crore, while foreign portfolio investors (FPIs) sold equities to the tune of Rs 968.18 crore on Friday, provisional data showed.
Photograph: Amit Dave/Reuters