Amid a firming trend in the Asian region, the 30-share index gained 293.30 points, or 1.49 percent, to trade at 20,026.06, with banking, capital goods, PSUs and power sector stocks leading the rally. It had lost over 265 points in the previous two sessions.
The wide-based National Stock Exchange index Nifty rose by 81.95 points, or 1.40 percent, to trade at 5,932.55.
Brokers said sentiments turned buoyant after Securities and Exchange Board of India (Sebi) allowed FIIs to invest in government securities without any auction mechanism so as to boost foreign fund inflows into the capital markets.
They said rise in rupee also supported the upside in equities. The rupee gained 90 paise against dollar to 62.58 in morning trade on Monday. In the Asian region, Hong Kong's Hang Seng index rose by 1.47 percent in the opening trade, while Japan's Nikkei would remain closed.
The US Dow Jones Industrial Average ended 0.49 percent higher on Friday.


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