However, the retail inflation moved up marginally to 5 percent in December.
The 30-share barometer moved up by 84.92 points, or 0.30 percent, to 27,670.19 with FMCG, healthcare, banking, capital goods, power and metal sector stocks leading the rally.
On similar lines, the National Stock Exchange index Nifty rose by 33.30 points, or 0.40 percent, to 8,356.30.
Brokers said buying activity gathered momentum on positive IIP data as the country's industrial production grew at a 5-month high of 3.8 percent in November due to improvement in manufacturing and mining sectors as well as better offtake of capital goods.
Among other Asian markets, Hong Kong's Hang Seng index was up by 0.48 per cent, while Japan's Nikkei down by 1.74 percent in morning trade.

US Dow Jones Industrial Average ended 0.54 percent lower in Monday's trade.

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