The S&PBSE Sensex hit all-time high of 35,612.11 and the Nifty50 held at a new peak of 10,906.85 on sustained buying by foreign funds and retail investors despite weak global cues. At 9.35 a.m., the 30-share BSE index Sensex was up 112.37 points or 0.32 per cent at 35,623.95 and the Nifty50 was up 15.3 points at 10,910.

Earnings of bluechips like Axis Bank and Maruti Suzuki as well as derivatives expiry will dictate the market trend in a holiday-shortened week ahead. Stock markets will remain closed on Friday for Republic Day.

The Nifty 50 and the Sensex can extend their rally in the truncated week, taking cues from the quarterly results announcement of bluechip stocks. The January derivatives expiry, ahead of a long weekend, can trigger some profit-booking in the latter part of the week. The market is likely to now turn its focus on the upcoming Budget.

US stock futures, Asian equities and the dollar pulled back slightly on Monday after the US government was forced to shut down amid a dispute between President Donald Trump and Democrats over immigration.

MSCI's broadest index of Asia–Pacific shares outside Japan eased 0.1 per cent, while Japan's Nikkei was down 0.15 per cent. US S&P500 mini futures dipped 0.1 per cent in early trade, while US Treasuries price fell, pushing up the benchmark 10-year yield to as high as 2.672 per cent, its highest level in 3-1/2 years.

Republican and Democratic leaders of the US Senate held talks on Sunday seeking to break the impasse that has kept the US government shut down for two days.