Bharat Petroleum was top gainer in the Nifty 50 basket of shares, the stock rose 14 per cent.

Highlights Sensex surged as much as 1,426 points to close above 39,000 mark

HDFC, ICICI Bank, L&T were among the top Sensex movers

Bharat Petroleum was top gainer in the Nifty 50 basket of shares

The S&P BSE Sensex and NSE Nifty 50 indices skyrocketed for second straight session after the investor sentiment got a boost from corporate tax rate cuts announced by Finance Minister Nirmala Sitharaman on Friday. The Sensex surged as much as 1,426 points to close above 39,000 mark for the first time since July 17 and the Nifty advanced close 11,700 mark. Rally in banking and fast moving consumer goods shares supported the upmove in today's session. HDFC twins, ICICI Bank, Larsen & Toubro, ITC and Kotak Mahindra Bank were among the top Sensex movers and contributed over 800 points towards upmove in the Sensex.

The Sensex surged 1,075 points or 2.83 per cent to close at 39,090 and Nifty 50 index rose 329 points or 2.92 per cent to end at 11,603. Today's upmove comes a day after the Sensex and Nifty surged the most in over 10 years on Friday following announcement of corporate tax rate cut.

"A mega bull market is starting now on the back of the reforms of the century for India... I don't think we will be looking back anytime soon," AK Prabhakar, head of research at IDBI Capital, told NDTV.

Nine of 11 sector gauges compiled by National Stock Exchange ended higher led by the Nifty Private Bank index's 5.6 per cent gain. Nifty FMCG, Nifty Financial Services, Nifty Bank, Nifty Auto, NIfty PSU Bank and Nifty Realty indexes also rose between 2 and 5.4 per cent each.

On the other hand, Nifty IT index dropped nearly 3 per cent after Infosys and Tata Consultancy Services came under selling pressure.

Mid- and small-cap shares also witnessed buying interest in today's session as the Nifty Midcap 100 rose 2.45 per cent and the Nifty Smallcap 100 index climbed 3.14 per cent.

Bharat Petroleum was top gainer in the Nifty 50 basket of shares, the stock rose 14 per cent to close at Rs 459. Larsen & Toubro, Bajaj Finance, Eicher Motors, Indian Oil, Asian Paints, Adani Ports, Bajaj Finserv, Axis Bank, Kotak Mahindra Bank and ITC were also among the gainers up between 7 and 9 per cent each.

On the flipside, Zee Entertainment, Infosys, Power Grid, Tata Motors, Dr Reddy's Labs, Cipla and NTPC were among the laggards.

The overall market breadth was positive as 1,197 shares closed higher while 622 closed lower on the NSE.