Sensex skyrocketed on Monday, 26 August by 792.96 points to close at 37,494.12 while Nifty soared 228.50 points to 11,057.85.
Earlier, benchmark indices traded higher during the afternoon of Monday with Sensex trading 690 points or 1.88 percent, higher at 37,393 levels. The broader Nifty50 index hovered around 11,027 levels, up by 197 points or 1.82 percent.
HDFC, Bajaj Finance, YES Bank, Larsen & Toubro, and ITC were the top gainers.
Markets reacted positively to US President Donald Trump’s statement that US and Chinese trade negotiators would “very shortly” resume talks in what he described as a breakthrough in the two economic superpowers' trade war.
Earlier in the day, the Indian equity indices opened sharply higher with Sensex rising 1.02 percent to 37,068.20 and the NSE Nifty 50 gaining 0.93 percent to 10,929.60 as of 9:18 am, but the rupee declined by almost 50 paise.
The broader markets represented by the NSE Nifty 500 Index rose 0.87 percent.
This comes after Finance Minister Nirmala Sitharaman, in a press conference on Friday, had announced various measures, including the withdrawal of FPI surcharge and removal of angel tax for start-ups.
The rupee, however, on Monday, opened lower against the US dollar at 72.03 and declined to as much as 72.17 — down 51 paise from the previous close — in morning trade, according to NDTV.
It marked the lowest intra-day level recorded for the rupee so far in calendar year 2019, NDTV reported.
It declined against the US currency in early trade due to strong dollar demand from banks and importers amid unabated foreign fund outflows, according to PTI.
Forex trader said the local unit came under pressure after the latest escalation of the US-China trade war.
(With inputs from BloombergQuint, NDTV, PTI, Business-Standard).
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