The Bombay Stock Exchange Sensex rose by 568 points to 23,554.12 on Monday – its biggest single-day gain in a more than a year and second-biggest since the National Democratic Alliance government came into power in May 2014. The index had last climbed as many points or higher on January 15, 2015, when it rose 728.73 points after the Reserve Bank of India implemented a 25-basis-point rate cut, reported PTI. The National Stock Exchange Nifty also rose by 182 points to 7,162.95.

The rise, which was put down to a sharp recovery in Asian markets, perked up recently battered banking stocks. Shares of the State Bank of India rebounded by 7.94% to Rs 167.25 on value-buying, while those of state-run Bank of Baroda, which recorded its highest-ever quarterly loss, increased by more than 22%. This was after China's central bank fixed a higher value of the yuan following a week-long holiday.

The rupee also strengthened further against the United States dollar for the second consecutive day. The Indian currency surged by 16 paise to end at 68.07 per dollar. It has risen by 23 paise, or 0.34%, in two days.