Equity benchmark Sensex extended its winning run to the fourth day running on Monday and reclaimed the 58,000-level, tracking firm global trends and fresh foreign fund inflows.
Buying in index major Reliance Industries added to the momentum.
The 30-share BSE benchmark climbed 545.25 points or 0.95 per cent to settle at 58,115.50. During the day, it jumped 600.42 points or one per cent to 58,170.67.
The broader NSE Nifty advanced 181.80 points or 1.06 per cent to 17,340.05.
Among the Sensex constituents, Mahindra & Mahindra, NTPC, Reliance Industries, Maruti Suzuki India, Bharti Airtel, Kotak Mahindra Bank, Power Grid and UltraTech Cement were the lead gainers.
However, Sun Pharma, Hindustan Unilever, IndusInd Bank and Nestle were among the laggards.
In Asia, markets in Seoul, Shanghai, Tokyo and Hong Kong ended higher.
Bourses in Europe were trading in the green during mid-session deals. The US markets had ended on a higher note on Friday.
Meanwhile, international oil benchmark Brent crude declined 1.35 per cent to $102.6 per barrel.
Foreign institutional investors remained net buyers in the capital markets as they bought shares worth ₹1,046.32 crore on Friday, as per exchange data.
"The big positive for the Indian market is the FPIs turning buyers in July after nine months of relentless selling," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign investors turned net buyers and invested nearly ₹5,000 crore in Indian equities in July.