Mumbai: The BSE Sensex ended 281 points higher or 1.45 percent on Monday. It rose to three-month high on strong buying, with investors expecting brisk corporate earnings for the fourth quarter amid positive global markets.

Brokers said FIIs continued to buy on a string of positives like good auto sales and strong export numbers despite high global crude oil prices.

The sentiment was so strong that all 13 sectoral indices closed with a rise of between 0.29 percent and 2.38 percent, with capital goods, IT, auto and banking leading the pack.

The surge on Monday was 281.34 points or 1.45 percent over the previous close. On Friday, Sensex had lost 24.83 points and snapped this year's strongest 8-day gaining streak.

The Bombay Stock Exchange 30-share index, Sensex, resumed trading in the positive zone and gradually moved upwards to settle the day at 19,701.73 -- highest closing since January 6, when it had closed at 20,184.74.

Similarly, the NSE 50-issue Nifty bounced back 82.40 points or 1.41 percent to close at 12-week high of 5,908.45.

Hectic FII buying continued to keep the market sentiment buoyant as foreign funds pumped in Rs 6,765.47 crore in the last week, including provisional data of March 31 and April 1
-- taking a total to Rs 9,053.57 crore since March 22.

"Indian markets are witnessing broad-based rally as foreign institutional investors continue to pump money across the board," CNI Research CMD Kishor Ostwal said.

SMC Global's Head of Research Jagannadham Thunuguntla said, "Basically, it's a kind of a pre-earnings rally, while concerns over crude oil prices have taken a backstage at this
time."

On the overseas front, Asian indices, except South Korea, closed in the green in view of rally on Wall Street last Friday on better-than-expected US jobs data. The Chinese
market was closed on Monday for local holiday.

European stocks, however, were trading narrowly mixed in their afternoon deals.

Other gainers from the Sensex pack were, Jaipra Asso 3.25 percent, Marurti Suzuki (2.07 pc), Jindal Steel (1.61 pc) and Bharti Airtel (1.21 pc).

However, Reliance Communications fell 2.24 percent, HUL by 1.62 percent and Cipla by 1.51 percent.

Among sectoral indices, BSE-Capital Goods rose by 2.38 pct, BSE-IT - 2.18 pc, BSE-TECK - 1.84 pc, BSE-Auto - 1.83 pc, Bankex - 1.78 pc, BSE-Power - 1.44 pc and BSE-PSU - 1.42 pc.

Reflecting participation of retail investors, BSE-Midcap and BSE-Smallcap indices also firmed 1.67 percent and 2.83 percent respectively.