Sensex jumps by 530 points to close at record high, Nifty at 12,079

Heavy buying across all sectors helped equity benchmark indices to gain over 1.3 per cent on Monday amid positive global cues with reports of progress in the US-China trade dispute lifting investor sentiment.

Reports said that the world's two largest economies are close to an initial trade agreement. Besides, foreign portfolio investors appear to be positive on emerging markets like India.

The BSE S & P Sensex closed 530 points or 1.31 per cent higher at 40,889 while the Nifty 50 edged up by 165 points or 1.38 per cent to 12,079.

All sectoral indices at the National Stock Exchange were in the green with Nifty metal adding gains of 3.09 per cent. Nifty auto and pharma were up by 1.8 per cent each while PSU bank ticked up by 1.4 per cent.

Among stocks, Bharti Airtel was the star of the day with gains of 8.1 per cent at Rs 454.85 per share. Bharti Infratel too was a prominent gainer at Rs 249.10 per share, up 7.37 per cent from its previous close.

Metal stocks rallied on renewed hopes of positive developments in US-China trade talks. Tata Steel closed higher by 5.2 per cent, Hindalco by 4.4 per cent, JSW Steel by 3.4 per cent and Vedanta by 2.7 per cent.

IndusInd Bank, Axis Bank and HDFC too closed with smart gains of over 2.5 per cent each. However, those which lost were Zee Entertainment, Yes Bank, ONGC, GAIL and Bharat Petroleum Corporation.

Meanwhile, Asia Pacific shares outside Japan bounced by 0.7 per cent while Japan's Nikkei firmed by 0.7 per cent and Shanghai blue chips 0.3 per cent.