Mumbai, April 6 -- Indian equity benchmarks closed sharply higher on Monday, extending gains for the third consecutive session and staging a strong recovery after a weak start to the day. The market opened in negative territory, but sentiment improved in the afternoon session as the Nifty reversed early losses, supported by media reports indicating a possible geopolitical de-escalation between Iran and the United States.

Despite the rebound, investor sentiment remained cautious ahead of the RBI's upcoming monetary policy decision.

The Nifty settled above the 22,950 mark, recovering significantly from its intraday low of 22,542.95 recorded during mid-morning trade. Sector-wise, consumer durables, financial services, and PSU banking stock...