NSE Nifty50 was up by 0.4 per cent, or 89 points, to 22,565.45, while the BSE Sensex advanced to 74,303.84, up by 0.58 per cent, or 425 points.

Of the 3,131 stocks actively traded, 1,595 advanced, 1,387 declined and 149 stocks remained unchanged. 137 stocks hit 52- week high and 9 stocks hit 52-week low at 9.30 a.m. on Monday on the BSE.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The cut of 172 points on the Nifty last Friday is rumoured to be triggered by fears of changes in the long-term capital gains tax in the Budget after elections. The finance minister quickly clarified that these are speculative. This clarification and positive global cues are likely to support the market in the near-term.”

The US jobs data for April has come lower-than-expected, indicating weakening labour market and slowing economy. The US unemployment rose to 3.9 per cent in April. So the possibility of a rate cut by the Fed has again brightened. The decline in the dollar index to 105.8 and the cut in the 10-year US bond yield to 4.49 per cent augur well for the market.

Positive comment by Warren Buffett that India is an untapped market with great potential is hugely important. FIIs can take a cue from that rather than react every time to changes in US bond yields, per analysts.

Kotak Mahindra Bank is likely to respond positively to its impressive Q4 results. The Q4 auto results coming this week will be keenly watched by the markets.

Also read: Stock to buy today: NHPC

Major gainers on the NSE at 9.30 a.m. were Kotak Bank (4.33 per cent), Britannia (23 per cent), JSW Steel (1.64 per cent), TCS (1.60 per cent), IndusInd (1.38 per cent).

Major losers were Titan (-4.77 per cent), SBI (-2.25 per cent), Shriram Finance (-1.81 per cent), Bajaj Auto (-1.54 per cent), Adani Enterprises (-1.19 per cent).

BSE SmallCap lost 0.56 per cent and mid-cap index declined 0.86 per cent