Equity benchmark indices shaved off early gains but ended in the positive terrain on Monday with pharma stocks leading the rally.
At the closing bell, the BSE S&P Sensex was up by 142 points or 0.37 per cent at 38,182 while the Nifty 50 gained by 61 points or 0.54 per cent at 11,275.
All sectoral indices at the National Stock Exchange were in the green with Nifty pharma up by 5.4 per cent, realty by 2.8 per cent and auto by 0.8 per cent.
Among stocks, Cipla was the flavour of the day by gaining 9.48 per cent to Rs 797.70 per share while Sun Pharma ticked up by 3.4 per cent to Rs 544.10 and Dr Reddy's by 2.6 per cent to Rs 4,691.65.
Defence stocks rallied after the government said it will stop importing 101 items of military equipment in an effort to boost domestic defence production.
Shares of defence equipment manufacturers Bharat Electronics rose by 9.2 per cent, Hindustan Aeronautics by 8.7 per cent and Bharat Dynamics by 4.3 per cent.
Mahindra & Mahindra gained by 4.9 per cent, Larsen & Toubro by 4.8 per cent, Tata Motors by 3.6 per cent and JSW Steel by 2.4 per cent.
However, Eicher Motors slipped by 2.2 per cent, Maruti Suzuki by 1.2 per cent, Reliance Industries by 1.1 per cent and Nestle India by 0.8 per cent.
Meanwhile, Asian stocks were in tight ranges as worries over flaring tensions between the United States and China weighed on market sentiment.
Japanese and Singaporean markets were closed for public holidays but Hong Kong's Hang Seng index fell by 0.2 per cent. Shanghai composite rose by 0.75 per cent as China's factory deflation boosted hopes of economic recovery in the world's second-biggest economy.
( With inputs from ANI )