Nifty on Monday breached the 11,500-mark for the first time. The BSE benchmark Sensex also rallied by 178.77 points to quote at an all-time high of 38,126.65 in early trade on Monday.
The markets opened after Thursday as the forex market was shut on Friday on account of Parsi New Year.
Meanwhile, a higher opening in the equity market supported the rupee's recovery. The rupee recovered from its all-time low by rising 38 paise to 69.77 against the US dollar in early trade at the Interbank Foreign Exchange market on fresh selling of the greenback by exporters and banks ahead of US-China trade talks this week.
Besides, the dollar weakened against other currencies overseas as demand for the safe-currency receded on optimism over a reduction in US-China trade tensions, helping the domestic currency rebound, forex dealers said.