The Sensex ended the day with gains of 80 points (provisional), while the Nifty rallied 21 points in trade. Bharti Airtel was the top gainer from the Nifty with Cairn India and Mahindra and Mahindra being the other gainers.
PSU banking stocks were in the limelight with Punjab National Bank and Bank of Baroda seeing value buying at lower levels.
Tata Steel was the top loser from among the Nifty stocks after reports of losses at Tata Steel Europe. Coal India and Tata Motors were the other significant losers in trade. Infosys which had rallied sharply in trade on Friday came in for some selling pressure and dropped almost 1.5 per cent.
Polaris gained after reports that Tech Mahindra may buy a stake in its IT Services business. Shares in Kohinoor Foods jumped 20% on reports that it would make a preferential basis allotment at Rs 160/share to Abu Dhabi-based agri company Al-Dahra.
Realty stocks saw a smart jump in trade with notable gainers from the space being Unitech, Godrej, HDIL and DB Realty.
Pharma stocks were subdued with most of the stocks from the sector ending flat with a marginally positive bias.
Meanwhile, most of Asia closed the day with gains.