No changes in rail freight rates, and expectations of another stimulus package with more tax sops in the forthcoming interim budget and interest rate cuts amid firm global cues lifted the benchmark Sensex by 169 points.
Short-coverings after the mid-session ahead of the interim general budget, to be announced on Monday, took the Bombay Stock Exchange 30-share barometer to the day's high of 9,695.59.
But weekend profit-selling by wary operators and retail investors at the fag end pulled the Sensex down marginally to settle the day at 9,634.74, a net rise of 168.91 points or 1.78 per cent over the previous close.
Railway Minister Lalu Prasad on Friday presented the interim railway budget without making changes in freight rates.
Buying mainly in metal, realty, auto, banking and capital goods counters on expectations of tax sops and a rescue package for the economy in the interim general budget on Monday kept the market buoyant.
Anticipation of key interest rate cuts by the apex bank after the interim budget as inflation fell to year's low of 4.39 per cent also boosted market sentiment.
The broader 50-issue Nifty of the National Stock Exchange also rebounded by 55.30 points or 1.91 per cent to 2,948.35 from its last close.