Capital inflows in stocks from consumer durables, capital goods, pharma and power stocks also helped domestic indices cement gains even as Hang Seng and Shanghai indices slumped after moves by authorities to curb speculative lending.     

Country's third largest software services exporter, Wipro, on Monday was the top Sensex gainer with a rise of 5.26 percent after it announced better than expected earnings last Friday after markets closed.

Besides Wipro, ICICI Bank, Tata Motors, Axis Bank, RIL, L&T M&M, Sun Pharma, Bharti Airtel, GAIL and BHEL shares also attracted good buying. However, fall in HUL, HDFC, TCS, Infosys, SBI and Hero MotoCorp capped the benchmark's gains.     

The BSE 30-share barometer resumed higher in line with firm Asian cues on the back of smart rise on Wall Street on last Friday. It remained in positive terrain throughout the day before concluding at 28,262.01, revealing a gain of 140.12 points or 0.50 percent. This is its strongest close since 28,458.1 on December 5, 2014.

In straight three sessions, the Sensex has flared up by 915.19 points or 3.35 percent, including biggest gains in last five years of 728.73 points on January 15, 2014.

The wider 50-issue CNX Nifty of the NSE also improved further by 36.90 points, or 0.43 percent, to 1-1/2-month high of 8,550.70.

"Markets are currently in a very narrow range of 8200-8500 level amidst lack of strong market cues...our Asian peer Shanghai was down by more than 8 percent intraday," said Bonanza Portfolio, Senior Vice President, Rakesh Goyal.

Undoubtedly, domestic cues dictate the market trend during the earning season but global markets can influence the early trades, said Religare Securities, President-retail distribution, Jayant Manglik.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 1099.93 crore on last Friday as per provisional data.

Key benchmark indices in Japan, Singapore, South Korea and Taiwan finished higher by 0.21 percent to 0.89 percent while Chinese stocks tumbled by 7.70 percent in a sell-off, which hit financial sector stocks the most, as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business.
In Hong Kong, the Hang Seng was off 1.51 percent.
Veracity Broking Services, Head of Research, Jignesh Chaudhary, said, "Local indices opened strong and added over half a percent during the day with the help of bluechip companies. Last week's surprise rate cut helped boost gains today as well."

As many as 22 scrips out of the 30-share Sensex pack ended higher while others finished lower.

Besides Wipro, other gainers from the Sensex pack include Gail India 3.73 percent, Axis Bank 2.67 percent, BHEL 2.57 percent, Tata Motors 2.50 percent, Bharti Airtel 2.25 percent, M&M 2.16 percent and ICICI Bank 1.94 percent.

Cipla 1.61 percent, L&T 1.38 percent, Sun Pharma 1.33 percent, Hindalco 1.26 percent, Reliance Industries 1.25 percent, and NTPC 1.07 percent logged moderate gains.

However, HUL dropped by 5.27 percent after tepid results, traders said, adding that selling was also seen in Hero Motocorp which fell by 1.90 percent.

Among the S&P BSE sectoral indices, Consumer Durables rose by 3.35 percent, followed by Capital Goods 1.17 percent, Healthcare 1.17 percent, Power 1.08 percent, Auto 0.98 percent, Bankex 0.92 percent and Oil&Gas 0.81 percent.     

Total market breadth turned positive as 1,657 stocks ended in the green, 1,318 finished in the red and 110 ruled steady. Total turnover fell to Rs 3,487.12 crore from Rs 4,135.56 crore on last Friday.

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