The Sensex and Nifty closed higher for a third session in a row. Stock markets started the week on a strong note, with the SP BSE Sensex closing 317 points or 0.9 per cent higher at 35,774 on Monday.

NSE benchmark index Nifty50 advanced 81 points to settle at 10,763.

Both the indexes clocked their best closing levels since October 3.

Gains in FMCG, auto, metal, information technology and pharma stocks pushed the domestic markets higher despite a mixed trend in Asian peers.

The upmove in the Sensex and Nifty came on a day the Reserve Bank of India board met with the government to discuss several issues related to liquidity, lending rules for banks and handing over surplus reserves.