After a holiday-truncated week, the benchmark BSE Sensex rose over 107 points in early trade on Monday on increased buying by funds and retail investors on encouraging manufacturing data for March.
The 30-share index, which had gained 302.65 points in the previous session on last Wednesday, jumped further by 107.44 points, or 0.38%, to 28,367.58.
Also, the National Stock Exchange index Nifty reclaimed the 8,600-mark by surging 32.90 points, or 0.38%, to 8,619.15 in early trade.
Capital goods, realty, auto, oil and gas and consumer durables shares saw increased buying activity after an HSBC survey said India's manufacturing sector output rose in March amid stronger increase in new orders that led firms to boost production levels, brokers said.
Among other Asian markets, Japan's Nikkei shed 0.72% in early trade on Monday while financial markets in Hong Kong Hang Seng are closed for public holiday.
The US Dow Jones Industrial Average ended 0.37% higher in the previous session.