The BSE S&P Sensex closed 396 points higher at 38,990 while the Nifty 50 gained by 133 points to wind up at 11,573. At the National Stock Exchange, all sectoral indices except for IT were in the positive zone.
Tata Steel moved up by 2.9 per cent. ICICI Bank edged higher by 2.9 per cent and IndusInd Bank by 2.3 per cent. Oil marketing firms like Indian Oil and Bharat Petroleum gained by 1.7 per cent each.
The forex and commodity futures markets also did not conduct any trading. Stock markets will resume trade on Tuesday.
The other prominent losers were Bajaj Finserv, Vedanta, Adani Ports and JSW Steel which lost over 2 per cent each. Hindalco, Zee Entertainment, IndusInd Bank and Bajaj Finance too were in the red.
Among stocks, Bharti Infratel was the top gainer and moved up by 3.2 per cent to trade at Rs 257.30 per share. Sun Pharma was up by 2.8 per cent, Indiabulls Housing Finance by 2.7 per cent, Dr Reddy by 2.2 per cent and Cipla by 1.5 per cent.
But pharma stocks were on slippery ground with Dr Reddy down by 5.8 per cent, Sun Pharma by 5.7 per cent and Cipla by 1.3 per cent. Wipro, Coal India, Power Grid and ONGC also shed gains by over 1 per cent.
Overseas issuances will facilitate the development of overseas credit default swap market. While this will help in efficient price discovery, overseas issuances have been seen to have an adverse impact on the domestic market.
Global indices fell after the US Fed Reserve lowered interest rates by 25 basis points for the first time in a decade but also signalled it may not need to do more.
Both Sensex and Nifty were seen extending losses sometime ago. Sensex was trading 164 points below while Nifty went down the 11,900 mark.
Among stocks, Bharti Infratel traded over 2 per cent lower while Zee Entertainment was down 1.7 per cent. HCL Tech, Sun Pharma and UPL also traded in the red.