The Bombay Stock Exchange benchmark Sensex gained 445 points at 1330 hrs on Monday on aggressive buying by funds, triggered by firming global trend.
The 30-share barometer moved up by 445.48 points at 10,409.77 following a significant rise in heavy-weight stocks.
The wide-based National Stock Exchange's Nifty also rose by 137.75 points at 3,110.75.
The rally was backed by stocks of metal, capital goods and oil and gas segments following reports of China's massive economic stimulus package of 586 billion dollars in its biggest move to stop the global financial crisis from hitting the world's fourth-largest economy.
A firming trend in other Asian stock markets led by Hong Kong's Hang Seng, which went up by 5.5 per cent, and Japan's Nikkei, which gained 5.20 per cent, also influenced trading.