A fag-end spurt in buying tracking strong global cues helped the benchmark BSE Sensex to rally by 330 points to close the day at one-and-a-half week high of 27,701.79 on Monday, completing three days of gains.
The 30-share BSE index began the day's trade on a positive note and a sudden spurt in buying in the last session lifted the index to 27,701.79 at close, a rise of 329.95 points or 1.21% from its previous close.
The Sensex had surged by 991.66 points or 3.71% in three days of gains.
The 50-issue NSE Nifty also jumped by 98.80 points or 1.20% to end above 8,300-mark at 8,324.00.
"Equity markets witnessed positive momentum today (Monday) tracking positive cues from global markets, rebound in oil prices and strong close on Wall Street," said Kiran Kumar Kavikondala, director & CEO, WealthRays Securities.
Crude prices climbed to above USD 62 a barrel. Traders said there is consensus in markets worldwide about crude remaining above USD 60 for the rest of the year now.
Rally was seen across the board as all the 12 sectoral indices closed in the green between 0.13-1.48%.
Metal shares were in the limelight after rise in commodity prices in overseas markets.
"The statement from Finance Minister Arun Jaitley that India could well achieve 6% growth next fiscal and the vision to achieve 9-10% economic growth, cheered participants in the later half.
"In addition, participants are expecting some positive news on key bills like GST and Insurance in the ongoing winter session of Parliament..." said Jayant Manglik, president of retail distribution, Religare Securities.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 668.85 crore last Friday as per provisional data.
"On the domestic front, the final report of the Suresh Prabhu-led advisory group on developing power and coal sectors has added to reform expectations. But the insurance bill hangs in the balance as we enter the last days of Parliament's winter session," Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services said.
Major gainers were M&M 4.09%, Coal India 3.61%, HDFC 2.80%, BHEL 2.67% and Gail 2.64%. HDFC Bank at 2.39%, ONGC 2.18%, Bharti Airtel 1.87%, Hero Motocorp 1.71%, Tata Motors 1.71% HUL 1.64%, Axis Bank 1.49%, ITC 1.35%, SSLT 1.22%, SBIN 1.12% and Maruti 1.12% were the other major gainers of the day.
Hindalco fell by 1.17%, Larsen 0.57% and Tata Steel 0.33%.
Among BSE sectoral indices, Power rose by 1.48%, followed by FMCG 1.47%, Bankex 1.47%, Auto 1.40%, consumer durables 1.33%, Metal 1.28%, Oil&Gas 1.18% and Realty 1.06%.
The total market breadth remained positive as 1,552 stocks ended higher, 1,355 stocks finished lower while 117 ruled steady. The total turnover fell to Rs 2,475.35cr from Rs 3,692.57cr last Friday.
Asian markets ended higher, tracking gains in the US market last week. Key benchmark indices in China, Hong Kong, Japan, Taiwan, South Korea and Singapore rose by 0.08-1.57%.
European markets were also trading higher as key indices like France, Germany and UK hardened by 0.99-1.10%.