The Sensex rose 306 points to 38,331, while the Nifty jumped 92 points to 11,519. The market breadth was positive with 1,029 shares advancing, 569 shares declining, and 487 remaining unchanged on the NSE.
Shares of MindTree advanced 1% on the NSE as company board is scheduled to consider the buyback proposal on March 20.
Shares of Bandhan Bank slipped 2% after the bank has received 'No Objection' letter from National Housing Bank (NHB) subject to its compliance with the provisions of the relevant Acts, Rules, Regulations etc. in the matter, the company said in a statement after markets hours to the exchanges on Friday.
Volatility index India VIX was up 5.08% at 16.67.
IOC, HPCL, Kotak Mahindra Bank, Adani Ports, and Axis Bank are trading higher, while Maruti, Grasim, and ONGC are trading lower on the NSE.
The most active stocks on NSE are Reliance Industries, Maruti, Kotak Mahindra Bank, and IOC.
The Indian rupee rose for the sixth consecutive day, and opened at 68.92/$, up 18 paise against the US dollar. The sharp rally in the Indian rupee could be attributed to robust foreign inflows ahead of general elections.
Asian stock markets were trading higher on Monday as investors awaited developments on the US-China trade front and US Federal Reserve policy meeting in focus.