The Sensex and Nifty ended higher for the fourth session in a row led by consumer durables, IT, infrastructure and TECk stocks owing to firm global cues and easing Indo-China border tension.

India and China have agreed to an “expeditious disengagement” of troops in a disputed border area where their soldiers have been locked in a stand-off for more than two months.

The decision comes ahead of a summit of the BRICS nations - a grouping that also includes Brazil, Russia and South Africa - in China next month, which Indian Prime Minister Narendra Modi is expected to attend.

Brokers said persistent buying by domestic institutional investors and a firm trend in other Asian markets on fresh hopes that Donald Trump will be able to push through market-friendly tax reforms also buoyed the domestic sentiment.

Strengthening of rupee to 63.86 (intra-day) against the dollar at the forex market too had its positive impact.

The 30-share BSE index Sensex ended higher by 154.76 points or 0.49 per cent at 31,750.82 and the 50-share NSE index Nifty closed up by 55.75 points or 0.57 per cent at 9,912.80.

Among BSE sectoral indices, consumer durables index gained the most by 1.29 per cent, followed by IT 1.25 per cent, infrastructure 1.24 per cent and TECk 1.14 per cent.

Top five Sensex gainers were Infosys (+3.14%), NTPC (+2.1%), Sun Pharma (+1.96%), Hero MotoCorp (+1.93%) and HUL (+1.87%), while the major losers were Dr Reddy's (-2.01%), Tata Motors (-1.25%), Power Grid (-1.00%), State Bank of India (-0.41%) and TCS (-0.38%).

Infosys Ltd surged on the first day of trading since the appointment of co-founder Nandan Nilekani as chairman on hopes that the move would help defuse a months-long row between the founders and the board.

Infosys shares jumped as much as 4.6 per cent on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Shares of Dr. Reddy's Labs dropped as an US lawsuit has been filed against the company. The stock plunged as much as 2.9 per cent.

Analysts warned markets could see some volatility in the days ahead as monthly derivatives contracts are due to expire on Thursday.

“There is some sort of relief rally in Infosys,” said Krish Subramanyam, co-head - equity adviser at Altamount Capital Management, adding “there will be some volatility (ahead) as this is the expiry week".

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