Benchmark equity indices Sensex and Nifty rebounded sharply on Monday, surging nearly 2 per cent, buoyed by robust buying in Reliance Industries and a rally in Asian markets.

The 30-share BSE Sensex jumped 1,240.90 points or 1.76 per cent to settle at 71,941.57. During the day, it soared 1,309.55 points or 1.85 per cent to 72,010.22.

The Nifty climbed 385 points or 1.80 per cent to 21,737.60.

Among the Sensex firms, Reliance Industries jumped nearly 7 per cent, contributing the most to the rally in markets.

Tata Motors, Power Grid, Larsen and Toubro, Kotak Mahindra Bank, NTPC, Titan and UltraTech Cement were the other major gainers.

ITC, Infosys, JSW Steel, Tech Mahindra and Tata Consultancy Services were the laggards.

"The domestic market underwent an upturn as the recent sell-off and positive Asian peers provided an opportunity to accumulate quality stocks. Despite premium valuations, confidence is upheld among investors due to the optimistic environment surrounding the interim budget and recent set of results aligning with forecasts.

"Globally, the upcoming Fed policy stands out as a crucial factor. While a rate cut by the FOMC is unlikely, investors will eagerly monitor their commentary to get cues on future rate paths," said Vinod Nair, Head of Research, Geojit Financial Services.

In the broader market, the BSE midcap gauge climbed 1.68 per cent and smallcap index rallied 1.03 per cent.

Among the indices, energy jumped 5.29 per cent, oil & gas zoomed 4.94 per cent, power (3.03 per cent), services (2.82 per cent), capital goods (2.13 per cent), industrials (2.17 per cent) and consumer durables (1.93 per cent).

FMCG, IT and teck were the laggards.

A total of 2,266 stocks advanced while 1,654 declined and 141 remained unchanged.

In Asian markets, Seoul, Tokyo and Hong Kong settled in the positive territory while Shanghai ended lower.

European markets were trading mostly lower. The US markets had ended on a mixed note on Friday.

Global oil benchmark Brent crude declined 0.18 per cent to USD 83.40 a barrel.

Markets were closed on Friday on account of Republic Day.

On Thursday, the BSE benchmark declined 359.64 points or 0.51 per cent to settle at 70,700.67 points while the Nifty fell 101.35 points or 0.47 per cent to 21,352.60 points.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,144.06 crore on Thursday, according to exchange data.

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