In early trade on Monday, the Sensex rose more than 350 points, tracking advances in index heavyweights Reliance Industries, the HDFC twins, and ICICI Bank. The 30-share Sensex was trading 340.95 points, or 0.58 percent, higher at 59,106.53 after soaring to 59,156.62 in the opening session. The Nifty climbed 98.40 points, or 0.56 percent, to 17,630.45.

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Bharti Airtel was the Sensex pack's top gainer, increasing approximately 2%, followed by Dr. Reddy, SBI, Bajaj Finserv, Sun Pharma, and HDFC. On the other side Tata Steel, Nestle India, HUL, Titan, and PowerGrid were among the losers.

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The 30-share index down 360.78 points, or 0.61 percent, to 58,765.58, while the Nifty fell 86.10 points, or 0.49 percent, to 17,532.05 in the previous session.

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According to exchange statistics, foreign institutional investors (FIIs) were net purchasers in the capital market on Friday, purchasing shares worth Rs 131.39 crore.

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According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the dollar index slipping to 94.05 and the US 10-year yield slipping below 1.5 percent can be interpreted as indicative of the return of risk-on in equity markets.

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However, news from China can turn out to be a drag. China is trying to limit the damage to its real estate sector without bailing out Evergrande, he said, adding that an inevitable consequence will be a slowdown of the Chinese economy which will have implications for commodity prices and currencies of commodity exporters. "Back home, India's exports are booming and are in line to touch the USD 400 billion mark in FY22," he noted.

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Other Asian bourses were trading with significant losses in Hong Kong and Tokyo, while Shanghai and Seoul were closed for holidays. Meanwhile, Brent crude, the international oil benchmark, lost 0.30 percent to USD 79.04 a barrel. In early trade, the rupee slips 5 paise to 74.17 against the US dollar.