Benchmark indices Sensex and Nifty logged gains for a second straight session on Monday, mainly driven by IT stocks amid positive global cues after the US took trade tariffs off the table against Mexico.

However, concerns pertaining to liquidity situation in the NBFC sector continued to hit overall market sentiments, pulling down financial stocks and benchmark indices.

Top gainers in the Sensex pack were TCS, Bharti Airtel, Infosys, Axis Bank, L&T, ITC, PowerGrid, HCL Tech and Tata Steel, ending up to 2.39 per cent.

On the other hand, Yes Bank, Tata Motors, Coal India and ONGC were among the top losers, falling up to 2.89 per cent.

Sectorally, BSE teck, FMCG, telecom and consumer durables indices were among the top gainers, rising up to 1.61 per cent.

On the other hand, BSE oil and gas, energy, finance and banking indices fell up to 1.20 per cent.

Broader BSE midcap ended marginally higher, while BSE smallcap index ended in the red.

"The gains came on the back of positive global cues as investors concerns eased after the US and Mexico struck a migration deal last week to avert a tariff war. Sentiments were further boosted after a weak US jobs data announced Friday raised hopes of interest rate cuts by the Federal Reserve," said Deepak Jasani, Head - retail research, HDFC securities.

Last week, the Reserve Bank issued a revised framework for resolving stressed assets by offering lenders a 30-day period to label an account an NPA but has withdrawn all other resolution methods.

Concerned over stress in the NBFC sector, RBI Governor Shaktikanta Das has said there is a need to have a fresh look at the regulation as well as supervision, and the central bank will come out with guidelines on liquidity risk management framework shortly.

Globally, investors heaved a sigh of relief after US President Donald Trump pulled back from another trade war by suspending tariffs against Mexico.

Tracking positive developments on global front, Shanghai Composite Index settled 0.86 per cent higher, Hang Seng rallied 2.27 per cent, Nikkei jumped 1.20 per cent and Kospi gained 1.31 per cent

Bourses in Europe were also trading higher in their early deals.

On the currency front, the Indian rupee depreciated by 19 paise to close at 69.65 against the US dollar on Monday.

Brent crude futures, the global oil benchmark, fell marginally to USD 63.23 per barrel.

Foreign institutional investors bought shares worth a net Rs 216.20 crore on Monday, provisional data made available with exchanges showed.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)