Market benchmark BSE Sensex jumped over 175 points to hit its record high of 41,185.03 in the opening session on Monday tracking global euphoria over the US-China trade deal.
After starting significantly higher, the 30-share index pared gains to trade 15.33 points or 0.04 per cent up at 41,025.04. Similarly, the broader Nifty was trading 5.75 points or 0.05 per cent up at 12,092.45.
Kotak Bank was the top gainer in the Sensex pack rising up to 2.01 per cent, followed by HCL Tech, Tech Mahindra, TCS, Bajaj Auto and SBI.
On the other hand, Sun Pharma was the top loser, shedding up to 1.57 per cent. Yes Bank, HUL, ITC, Bajaj Finance and Axis Bank were also trading in the red.
In the previous session, the 30-share gauge ended 428 points, or 1.05 per cent, higher at 41,009.71, while the Nifty settled 114.90 points, or 0.96 per cent, higher at 12,086.70.
On a net basis, foreign institutional investors bought equities worth Rs 115.70 crore, and domestic institutional investors purchased shares worth Rs 384.92 crore, data available with stock exchange showed on Friday.
According to traders, an agreement between the US and China over trade tariffs has enthused global investors.
The two countries have reached a historic agreement on a phase one trade deal reaching a big breakthrough in the over 18-month-long bruising trade war between the world’s two largest economies that threatened to roil the global economy.
Bourses in Hong Kong, Shanghai, Tokyo and Seoul were trading on a flat note.
Back home, market participants are eyeing announcement of wholesale inflation later in the day, traders said.
Brent futures, the global oil benchmark, fell 0.34 per cent to USD 65 per barrel.
The Indian rupee appreciated by 8 paise to 70.75 against the US dollar in early trade on Monday as easing crude oil prices and positive developments on the US-China trade talk front strengthened investor sentiments.
Forex traders said the weakening of the US dollar vis-a-vis other currencies overseas also supported the rupee.
At the interbank foreign exchange the rupee opened at 70.80, then gained further ground and touched a high of 70.75, registering a rise of 8 paise over its previous close. On Friday, rupee had settled for the day at 70.83 against the US dollar.
The domestic unit, however, could not hold on to the gains and was trading at 70.80 against the dollar at 0940 hrs.