Buying returned to the market for the first time after the budget; Sensex rose 1397 points, Nifty close to 24750

Benchmark stock indices Nifty and Sensex rose almost 2% in sympathy with Asian peers' improvement following a decision by US President Donald Trump to temporarily suspend tariffs for a one-month period for both Canada and Mexico.

The 30-share BSE Sensex jumped 1,397.07 points or 1.81% to close at a one-month high of 78,583.81 points. During the day, it rose 1,471.85 points, or 1.90%, to 78,658.59.

The NSE Nifty rose 378.20, 1.62%, at 23,739.25, its high point since January 3. In the 30-share blue-chip universe, Larsen & Toubro rose nearly 5%. Others in the top gainers' list included Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement, and Asian Paints.

ITC Hotels, Zomato, Nestle, and Maruti were among the laggards. Asian markets saw notable gains with Seoul, Tokyo, and Hong Kong trading mostly lower. European markets were mostly trading lower. US markets closed in the negative zone on Monday.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Yesterday, the Indian market struggled to absorb the optimism generated by a good Union Budget due to geopolitical risks stemming from the 'Trump tariff war'. However, India may have outperformed in a weak global market, and domestic equities have rebounded sharply as global sentiment improved."

Global oil benchmark Brent crude fell 1.05% to $75.16 per barrel. Foreign institutional investors (FIIs) sold equities worth Rs 3,958.37 crore on Monday, according to exchange data.

The BSE benchmark Sensex had closed 319.22 points, or 0.41%, lower at 77,186.74 on Monday, snapping a five-day rally in the market. The Nifty had closed 121.10 points, or 0.52%, lower at 23,361.05.