The Sensex ended the day with gains of 86 points, while the Nifty rallied 24 points in trade. Leading the set of gainers from the Nifty were software stocks like TCS, Infosys and HCL. The buying support in tech stocks extended into the new week following Infosys' spectacular set of results reported on Friday.
Metal stocks which have been badly hammered in the last few trading sessions rallied and ended the day higher. Among the winners were Tata Steel, Jindal Steel and Sterlite.
Shares in Future Retail rallied after the company's tie-up with Amazon. Nifty stocks that had a weak session in trade were Mahindra and Mahindra, NTPC, Sun Pharma and DLF.
PSU Banking stocks had an excellent session in trade with notable winners being Oriental Bank of Commerce and Bank of India.
IndusInd Bank gained 2 per cent after the bank reported a good set of number for Q2 2014. Federal Bank was the top banking gainer jumping a huge 6 per cent in trade.
Meanwhile, markets in Europe were trading higher after some heavy selling pressure seen in the last few trading sessions. The German DAX, French CAC and the UK's FTSE were all trading higher.