Indian shares rallied on Monday amid across-the-board buying as investors cheered media reports suggesting that China and the United States were 'very close' to a phase one trade deal.
The S&P BSE Sensex index soared as much as 572.3 points to hit a record high of 40,931.71 before giving up some gains to end the session up 529.82 points, or 1.31 percent, at 40,889.23.
The broader NSE Nifty index climbed to as high as 12,084.50 before ending up 164.60 points, or 1.38 percent, at 12,079.00.
Metal stocks such as JSW Steel, Hindalco and Tata Steel surged 3-5 percent after a tabloid run by the ruling Communist Party's official People's Daily discounted "negative" media reports and said both countries were "very close" to a phase one trade deal.
China also remains committed to continuing talks for a phase two or even a phase three deal with the United States, the state-backed Global Times said on its Twitter feed.
Telecom stocks such as Infratel and Bharti Airtel jumped 7-8 percent while HDFC and Axis Bank gained around 3 percent in the financial space.
Titan Company climbed 2.8 percent and Ultratech Cement added 0.8 percent on news of Sensex rejig.
Ashoka Buildcon rallied 3.3 percent after its subsidiary Ashoka Concessions bagged a highway project in Telangana worth Rs 1,000 crore.
On the flip side, Zee Entertainment Enterprises slumped 5.3 percent, ONGC lost 2.3 percent and Yes Bank dropped 1.4 percent.