The Sensex today hit another record closing of 40,301.96 points, jumping 136.93 points over Friday's close.
Global cues were also strong, thanks to hopes of a trade deal between US and China. Most Asian markets ended higher led by a sharp rally in the Hong Kong's Hang Sang. The Dow Futures were pointing higher, which also led to some recovery in the Asian markets.
The broader markets represented by the NSE Nifty 50 rose 0.4 percent. The market breadth was tilted in favour of buyers. About 995 stocks advanced and 365 shares declined on National Stock Exchange. 8 out of 11 sectoral gauges compiled by NSE traded higher.
Shares in Yes Bank, which initially fell more than 10 per cent, managed to cut losses. It last ended trade near the Rs 66 mark, down just marginally.
Tata Motors slipped after its Oct numbers lagged estimates. However, metal stocks were seeing solid buying interest led by Tata Steel and Vedanta. Hero Motor Corp saw a drop in its share price after sales at the company dropped as much as 19 per cent. VMART retail also saw a drop in its share price after the company reported numbers that lagged estimates.
Meanwhile, the rupee was trading with with sharp gains and was last seen at 70.55 to the dollar.