NEW DELHI: Domestic benchmark indices jumped in Monday's after the US, following President Donald Trump’s meeting with China’s Xi Jinping on the sidelines of G20 meet, decided to halt tariffs on $200 billion worth of Chinese goods, easing trade tensions.
Gains, however, were limited as a sharp surge in crude oil prices overseas weighed on the rupee which fell 44 paise to 70.04 paise in early trade.
At 9.21 am, the BSE Sensex was trading 193.71 points, or 0.54 per cent, higher at 36,388.01.
The Nifty50 was ruling 40.95 points, or 0.38 per cent higher at 10,917.70.
“We continue to remain upbeat and expect the rally to extend immediately towards 11,000-11,150 levels.
On the flipside, Thursday’s gap area of 10,782-10,757 is likely to act as a key support zone now,” said Sameet Chavan of Angel Broking. Among Sensex stocks, Vedanta climbed 3.37 per cent to Rs 202.40.
Tata Steel, NTPC and Coal India added 2.71 per cent, 2.32 per cent and 2.05 per cent respectively. Sun Pharma plunged 9 per cent to Rs 448.40.
Mahindra Mahindra, YES Bank and Tata Motors dropped half a per cent.
The day will see the Monetary Policy Committee (MPC) kicking off its three-day policy review.
An ET poll of 23 market participants does not see any rate action in the fifth bi-monthly monetary policy meeting, but expected the committee to instead focus on greater liquidity, or cash availability, in the system. Gains were limited as rupee weakened on 4 per cent jump in oil prices ahead of a meeting by producer club OPEC this week.
A weakening rupee leads to foreign outlfow. Provisional Data showed foreign portfolio investors (FPIs) sold Rs 333 crore worth of domestic stocks on Friday.
DIIs were net buyers to the tune of Rs 1,489.65 crore, data suggested.