Snapping its four-session losing streak, equity benchmark Sensex rallied 534 points on Monday, led by gains in index heavyweights Reliance Industries, Infosys and ICICI Bank.
The 30-share BSE index ended 533.74 points or 0.91 per cent higher at 59,299.32. Similarly, the NSE Nifty surged 159.20 points or 0.91 per cent to 17,691.25.
NTPC was the top gainer in the Sensex pack, rising around 4 per cent, followed by Bajaj Finserv, SBI, Bajaj Finance, Tech Mahindra, Dr Reddy's and Tata Steel.
On the other hand, Bajaj Auto, HUL, Nestle India, Kotak Bank and Titan were among the laggards.
"As we approach the earnings season, indices remained buoyant through the day led by the metals and PSU names with the market breadth exhibiting positive momentum across midcaps and smallcaps," said S Ranganathan, Head of Research at LKP Securities.
Privatisation hopes on few metal names fuelled a 3 per cent upmove on the metal index even as select pharmaceutical and speciality chemical stocks saw good buying interest, he said, adding this month is likely to witness almost a dozen companies going public aiming to mop up over Rs 200 billion.
Elsewhere in Asia, bourses in Hong Kong and Tokyo ended with heavy losses, while Shanghai and Seoul were closed for holidays.
Stock exchanges in Europe were trading flat in mid-session deals.
Meanwhile, international oil benchmark Brent crude dipped 0.13 per cent to USD 79.38 per barrel.
Rupee Falls 19 Paise To Close At 74.31 Against US Dollar
The rupee tumbled 19 paise to close at 74.31 against the US dollar on Monday as a stronger greenback against key rivals and rising crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the local currency opened at 74.16 and witnessed an intra-day high of 74.13 and a low of 74.41 against the US dollar in day trade.
The local unit finally settled at 74.31 a dollar, down 19 paise over its previous close. On Friday, the rupee had settled at 74.12 against the US dollar.
"Rupee traded weak as dollar index rallied on the back of US FED tapering bond-buying hints in weeks ahead," said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent lower at 93.93.
"OPEC meeting outcome will impact crude prices and USD/INR pair being a crude net importer hence traders will keep a close eye on OPEC meet outcome," Trivedi said, adding that going ahead the rupee can be seen between 74.20-74.60.
Meanwhile, Brent crude futures, the global oil benchmark, advanced 0.15 per cent to USD 79.40 per barrel.
On the domestic equity market front, the BSE Sensex ended 533.74 points or 0.91 per cent higher at 59,299.32, while the broader NSE Nifty advanced 159.20 points or 0.91 per cent to 17,691.25.
Meanwhile, foreign institutional investors were net buyers in the capital market on Friday, as they purchased shares worth Rs 131.39 crore, as per exchange data.
Gold Marginally Lower; Silver Slips Rs 137
Gold in the national capital was down marginally by Rs 37 to Rs 45,539 per 10 gram on Monday amid muted global trends, according to HDFC Securities.
In the previous trade, the precious metal had settled at Rs 45,576 per 10 grams.
Silver declined Rs 137 to Rs 59,203 per kilogram from Rs 59,340 per kilogram in the previous trade.
In the international market, gold traded lower at USD 1,753 per ounce and silver flat at USD 22.42 per ounce.
"Gold prices traded weak with spot gold prices at COMEX trading 0.44 per cent down at $1,753 per ounce on Monday," according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.