Equity benchmark indices scripted heavy gains on Monday, two days after the government announced a raft of measures to boost economic growth. While BSE Sensex gained 792.96 points to close at 37,494.12, NSE's broader Nifty closed at 11,057.85 after gaining 228.50 points. 

Gold and silver prices in India also continued their record run with gold touching a new high of Rs 40,000 per 10 gram in Mumbai. Silver prices were up by 0.78% to Rs 44,952/kg.

On Friday, the government announced a slew of measures to boost the slowing economy. Rollback of surcharge proposed in the Budget on foreign portfolio investors, exemption of start-ups from ‘angel tax’ and infusion of Rs 70,000 crore to public sector banks were some of the steps announced by Finance Minister Nirmala Sitharaman.

China's stand that it opposes a trade escalation with the United States and is ready to enter a dialogue also had a positive impact on the market.

Among the prominent gainers were Yes Bank, Adani Ports, Indiabulls Housing Finance, HDFC and HDFC Bank.

However, steel majors were down with JSW Steel showing a loss of 3 per cent, Vedanta by 1.82 per cent and Tata Steel by 1.81 per cent. Sun Pharma and Hero MotoCorp also lost by about 1.9 per cent each.

Meanwhile, Asian shares sank as US President Donald Trump on Friday imposed an additional 5 per cent duty on 550 billion dollars of Chinese goods in the latest trade war escalation by the world's two largest economies.

Later on Monday, however, Chinese Vice Premier Liu He said Beijing strongly opposes trade protectionism and blockade in the field of new technologies.

"China is making efforts to ensure the integrity of production chains, we are ready to resolve the existing problem through consultation and cooperation, we strongly oppose the escalation of the trade war," he said.

(With ANI inputs)