The S&P BSE Sensex surged 546 points, or 1.83 per cent, to 34,830 levels and the Nifty50 index topped 10,300-mark.
Some of the stocks which gained on Nifty were HCL Tech, Gail, HDFC, HUL and Cipla, while Bajaj Finance, ICICI Bank and Axis Bank incurred losses.
Globally, stock markets around the world remained cautious as US stock markets gave up gains after a firm rally. It is worth noting that deaths in the US jumped by 1,800 the country’s highest single-day rise.
In the Asian market, too, stocks failed to see the sharp gains garnered in the previous two sessions. The oil market has also kept global trade on the edge due to wild swings seen over the past few days.
However, global analysts are concerned about the future. JP Morgan analysts released a note saying that Q1 earning season results, which will reveal the depth of the virus impact, may send markets around the globe sinking.
Data shows the recent move higher has been accompanied by short-covering and de-risking rather than active risk taking on the long side, the note added.
Sandeep Nayak, ED & CEO of Centrum Broking, said: “The prolonged trade war between US and China was weighing heavily on Indian indices. Positive statements made by both officials last week indicating that a trade pact is likely by the end of December 2019 are being welcomed. Moreover, FIIs are preferring emerging markets such as India as the recent easy monetary stance of Fed and ECB has improved liquidity in world markets.”
Shares of Reliance Industries traded 1.47 per cent up in Monday’s trade at 09:20AM (IST).