Benchmark stock indices Sensex and Nifty spurted over 1 per cent at close on Monday following buying in IT, oil and gas and banking shares bolstered by firm global trends.
Rising for a second straight session, the 30-share BSE Sensex rallied 760.37 points or 1.41 per cent to settle at 54,521.15. During the day, it jumped 795.88 points or 1.48 per cent to 53,760.78.
The broader NSE Nifty advanced 229.30 points or 1.43 per cent to 16,278.50 as 41 of its constituents advanced.
Among the Sensex constituents, IndusInd Bank, Infosys, Tech Mahindra, Bajaj Finserv, Axis Bank, UltraTech Cement, Kotak Mahindra Bank and ICICI Bank were the major gainers.
Dr Reddy's Lab, HDFC Bank, Maruti, Mahindra & Mahindra, Nestle, Hindustan Unilever and HDFC were the laggards.
"Indian markets opened on positive note following positive overall Asian markets. During the afternoon session markets further strengthened as buying in IT, teck and capital goods stocks was seen. Gains in frontline blue-chip stocks such as Infosys, Tech Mahindra also helped to lift the markets," said Narendra Solanki, Head Fundamental Research -Anand Rathi-Investment Services.
Meanwhile, international oil benchmark Brent crude jumped 2.18 per cent to USD 103.4 per barrel.
In Asia, markets in Seoul, Shanghai and Hong Kong ended significantly higher.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. said, "Markets made a strong comeback to end with solid gains, with Nifty closing above its week-old hurdle at 16275 mark. The two positive catalysts adding strength to the positive mood were China’s readiness for more stimulus and easing fears of hawkish Fed rate hikes. Judging by today’s positive close, the simple strategy on the benchmark Nifty is to establish long positions and remain a buyer as long as Nifty trades above its biggest support at 16001 mark.”
Markets in Europe were trading in the green during mid-session deals. The US markets had ended sharply higher on Friday.
The BSE barometer climbed 344.63 points or 0.65 per cent to settle at 53,760.78 on Friday and the Nifty advanced 110.55 points or 0.69 per cent to 16,049.20.
Foreign institutional investors went in selling mode again as they offloaded shares worth Rs 1,649.36 crore in the capital market on Friday, as per exchange data.