The Sensex jumped nearly 274 points in early trade on Monday, tracking significant gains in U.S. markets and buying in index majors Reliance Industries and HDFC.
The 30-share BSE benchmark was trading 273.74 points higher at 53,067.36 in early deals. The broader NSE Nifty gained 91.1 points to 15,873.25.
Among the Sensex firms, Tata Steel, Titan, Maruti, Bajaj Finance, M&M, Larsen & Toubro, State Bank of India, IndusInd Bank, Reliance Industries and HDFC were the biggest gainers in early trade.
In contrast, UltraTech Cement, Dr Reddy's, Nestle and Hindustan Unilever were among the laggards.
Markets in Asia were trading on a mixed note, with Hong Kong, Seoul and Shanghai quoting marginaly lower, while Tokyo traded higher.
Stock exchanges in the U.S. had ended with smart gains on Friday.
"Cautious trend could prevail as the street will anxiously await the WPI inflation numbers slated to trickle in on Tuesday," said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Meanwhile, international oil benchmark Brent crude declined 1.57% to $109.80 per barrel.
In the previous trade on Friday, the BSE benchmark declined 136.69 points or 0.26% to end at 52,793.62. The NSE Nifty dipped 25.85 points or 0.16% to settle at 15,782.15.
Continuing their selling spree, foreign institutional investors offloaded shares worth ₹3,780.08 crore on Friday, according to stock exchange data.