A benchmark index for Indian equities built on its early morning gains and was ruling almost 308 points higher than its previous close in afternoon trade on Monday.
Other Asian markets too rallied, strengthening the buying sentiment at the bourse here.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,124.29 points, was at 18,529.78 points, 308.35 points or 1.69 per cent up from its previous close at 18,221.43 points.
The Sensex had last seen this level in Jan 2008.
At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling 1.63 per cent higher at 5,568.55 points.
Broader markets indices were also in the green, with the BSE midcap 1.32 per cent up and the BSE smallcap index 1.69 per cent higher.
Metals, energy, realty and IT scrips saw healthy buys. All 13 sectoral indices on the BSE were in the positive.
The market breadth was positive with 2,118 scrips advancing, compared to 790 stocks declining and 97 remaining unchanged.
Other Asian markets were in the green with investors displaying robust buying appetite after the US payroll data released on Friday showed a fewer than expected number of people were without jobs.
The Japanese Nikkei closed 2.05 per cent higher at 9,301.32 points.
Hong Kong's Hang Seng ended 1.91 per cent up at 21,373.06 points. The Chinese Shanghai Composite index closed 1.54 per cent higher at 2,696.25 points.
European bourses too opened on a positive note.