Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
Several Sensex stocks hits 52-week low in intra-day trade on Monday with financials leading the decline.
Analysts mostly prefer domestic plays beside select films with foreign exposure.
The WPI inflation stood at negative 2.4% in May 2015, compared with a negative 2.65% in April 2015.
Despite the rally, on the basis of valuations, Indian markets aren't too expensive, says Christopher Wood, managing director and equity strategist at CLSA.
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