Rising for the seventh straight session, the benchmark BSE Sensex on Monday surged by 414 points to 27,730.21 on a rally in realty and banks shares, as above normal monsoon reignited hopes of an RBI rate-cut.
In last seven sessions, the index has gained 1,359.23 points, its longest winning run since February.
The sentiment was also boosted by firm global cues after Greece gave its creditors new proposals on reforming bailout, fuelling hopes of averting a default and possible exit from the Eurozone.
"A better-than-forecasted monsoon has reignited the optimism amongst market participants that a rate-cut by the RBI may be a possibility, if the monsoon trend sustains," said Hitesh Agrawal, head of research of Reliance Securities.
The 30-share BSE index resumed higher and remained in the positive terrain throughout the day. It hit an intra-day high of 27,782.31 before ending at 27,730.21, a steep rise of 414.04 points or 1.52% -- its biggest in a single day gain since May 8 when it surged by 506.28.
The broader 50-issue NSE Nifty reclaimed 8,300-mark to hit a intra-day peak at 8,369.45 and settled at 8,353.10, showing a significant rise of 128.15 points or 1.56%.
Of the 30 Sensex stocks, 25 ended with gains.
Top gainers among Sensex included Axis Bank, which surged 3.62% and ICICI Bank zoomed 3.46%.
Among sectoral indices, realty rose the most by surging 5.05%, followed by bankex 2.62%, consumer durables 2.42%, IT 1.86%, power 1.67%, FMCG 1.39%, metal 1.13% and auto 1%.
Mid-cap index rose 1.49% and small-cap gained 1.40%.
Meanwhile, foreign investors sold shares worth Rs 106.12 crore during Friday's trading.
Globally, Asian bourses ended higher, while European markets were in the green zone in opening trade.