The 50-share NSE Nifty saw the biggest single day percentage gains for the first time in last 22 months, up 194.50 points or 1.90 percent at 10,421.40.
Brokers said fresh buying by investors ahead of inflation data to be released after market hours today improved the market sentiment.
Meanwhile, the US Dow Jones Industrial Average ended 1.77 percent higher on Friday.
Equity markets on Monday turned encouragingly buoyant as Sensex posted its biggest gain in intra-day trade since March 2016. Japan's Nikkei 225 was trading 1.5 per cent higher, China's Hang Seng was up 1.3 per cent and Shanghai Composite 0.3 per cent and South Korea's KOSPI up 1 per cent.
Bharti Airtel rose over 1 percent on fund raising reports.
China data: China's industrial production, retail sales and fixed-asset investment numbers will be released on Wednesday and are are likely to point to slower growth, according to Bloomberg Economics forecasts. The Nifty Midcap index was up 1 percent despite balanced market breadth.
On the other hand, global markets rallied after the United States data indicated that non-farm payrolls jumped from last month, but annual growth in average hourly earnings slowed after a spike in January, easing fears of inflation. Metal stocks such as Vedanta, Jindal Steel, SAIL, Hindalco, Tata Steel, JSW Steel, National Aluminium, NMDC and Hindustan Zinc gained up to 4.43 per cent.
All the sector indices that the BSE compiles ended higher, led by the S&P BSE Telecom index, which gained 2.57%.