The S&P BSE Sensex surged over 200 points while the Nifty50 held on to its crucial support placed at 10,800 levels on Monday. The real action was seen in the broader market which outperformed benchmark indices by rising nearly 1 percent.

Equity markets across the globe including India rose after U.S. President Donald Trump and North Korean leader Kim Jong Un pledged to work toward complete denuclearization of the Korean peninsula.

"As news of the Trump Kim meet trickled down through the afternoon, indices gained strength to once again close at the highest point of the session. FIIs continue to sell whereas the DII s continue to be net buyers. Markets continue the uptrend and are slowly edging back towards previous highs," Nikhil Kamath, Co-Founder, Zerodha told Moneycontrol.

"We continue to remain cautious and would not advocate entering fresh longs at this point, we remain neutral and would wait for further cues before picking a direction at this juncture," he said.

Sectorally, the S&P BSE Healthcare index rose 1.9 percent, followed by the S&P BSE Capital Goods index which gained 1.1 percent, and the S&P BSE FMCG index was up 0.7 percent.

On the losing front, the S&P BSE Metals index slipped 0.56 percent, and the S&P BSE Telecom index dropped 0.3 percent.

The S&P BSE Midcap index rose 0.9 percent, and the S&P BSE Smallcap index rose 0.54 percent.