The BSE benchmark Sensex jumped as much as 218 points in the morning deals on the back of positive global cues.
The 50-share Nifty was trading above its important psychological level of 8,200 supported by gains in blue-chip counters like HDFC, ONGC, Tata Steel and ICICI Bank.
Meanwhile, Asian markets advanced Monday following a healthy US jobs report last week, while investor sentiment was also boosted by China’s decision to cut interest rates at the weekend for the third time in six months.
Shanghai added 0.60 per cent, Hong Kong rose 0.74 per cent, while Sydney added 0.10 per cent and Seoul was 1.02 per cent higher.
Tokyo rallied 1.35 per cent despite heavy losses in Sharp and Toshiba.
China’s central bank on Sunday cut rates by 25 basis points – after two similar moves since November – as it looks to support the world’s number two economy, which grew last year at its slowest pace since 1990.
Back home, buying was visible across the board. Auto, metal, realty and capital goods stocks were among the top performers in the morning deals. While, some amount of selling pressure was visible in the FMCG stocks.
From the Nifty-50 basket of stocks, 39 stocks were advancing while 11 were declining. Hindalco was the top Nifty gainer; the stock advanced 2.5 per cent to Rs 142. Bajaj Auto, Hero MotoCorp, HDFC Idea Cellular, Sun Pharma, Yes Bank, Tata Steel, M&M, Axis Bank, ICICI Bank, Cipla, ONGC and maruti Suzuki were also trading over 1 per cent higher on the Nifty.
On the other hand, Lupin, HUL, Ambuja Cements, HDFC Bank, Wipro and ITC were among the notable laggards.
Broader markets were also trading on a positive note. The BSE mid-cap and small-cap indices were up over 1 per cent each.
At 9:42 a.m., the Sensex was up 24 points at 27,345 and the Nifty was up 68 points at 8,260.