Mumbai: Stock markets closed higher for a fourth consecutive day on Monday driven by gains in banking and financial shares and a rally in global markets.

The 30-share BSE Sensex climbed 256.22 points or 0.31 per cent to settle at 82,445.21 as 21 of its constituents closed higher and nine declined. During the day, it jumped 480.01 points or 0.58 per cent to 82,669. The 50-share NSE Nifty surged 100.15 points or 0.40 per cent to 25,103.20.

In the four-day rally to Monday, Nifty has gained over 560 points or 2.27 per cent while Sensex has jumped 1,707 points or 2.1 per cent. Optimism over a new round of trade talks between the US and China also drove the markets higher. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,009.71 crore on Friday, according to exchange data

Analysts said the RBI’s jumbo 50 basis point rate cut last week has boosted investor sentiment helping most sectoral indices close higher. Energy, IT, and financial sectors emerged as lead gainers while broader market indices outperformed benchmark indicators.

“Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Among Sensex stocks, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, Power Grid, IndusInd Bank, Maruti, Bajaj Finserv and NTPC were the biggest gainers. However, Eternal, ICICI Bank, Titan, Mahindra & Mahindra, Adani Ports, Tata Steel and Bharti Airtel were among the laggards. “Equity markets continued to ride the momentum from last week’s RBI policy surprise, with the Nifty-50 opening strong and extending gains on Monday. Except for realty, all major sectors ended with gains with realty likely weighed down by profit-booking after the recent rally.