The Sensex ended at 17330, up 561 points and the Nifty was at 5193, up 175 points.
The global markets surged following European Union and International Monetary Fund agreement to provide rescue package to prevent spreading of Greece debt crisis to other Eurozone countries.
Nifty northbound; Rel Comm tanks 1pc
Nifty rallies 140 pts after losing 250 points in the previous week. It recovered almost 50pc of its loses. Heavy buying in metals, realty, banks, auto, IT, oil&gas and power stocks helped the market to recover the losses.
At 1:01 pm, Sensex was up 427.83 points or 2.55pc at 17196.94, and the Nifty was up 139.70 points or 2.78pcat 5157.75.
Among the largecap space, Hindalco was up close to 6pc. Sterlite Industries, Tata Steel, Reliance Infra and ICICI Bank gained 4 to 5pc. Cipla down more than 5.5pc post results, Reliance Communication down close to 1pc were on the losing side.
Index heavyweight Reliance was trading at Rs 1,070.70 up 3.56pc from its previous close of Rs 1,033.85. Hindustan Lever was trading at Rs 237.80 up 1.32pc from its previous close of Rs 234.70.
Tech major Infosys was trading at Rs 2,667.00 up 1.81pc from its previous close of Rs 2,619.65. Cigarette major ITC was trading at Rs 261.05 up 0.81pc from its previous close of Rs 258.95. Refinery major HPCL was trading at Rs 329.85 dipped 1.51pc from its previous close of Rs 334.90.
Top gainers on the BSE Midcap: Bajaj Finserv, Dish TV India, Thomas Cook, Sobha Developer and Carborundum shot up 4.5 to 9.5pc.
Top losers on the BSE Midcap: Dalmia Cement, Emami, Gillette India, TV 18 and Balrampur Chini slipped 1 to 4.5pc
Top gainers on the BSE Smallcap: Bhansali Eng, Tube Investment, Entegra, Panoramic Universal and JMD Telefilms declined 10 to 20pc.
Top losers on the BSE Smallcap: Panacea Biotec, Reliance World, Maharashtra Ele, Shristi Infra and Jamna Auto tanked 3.5 to 11.5pc.
The European markets opened with a gap up opening of 3 to 6pc gain. CAC rose 7pc. DAX & FTSE gained 4pc each. In an attempt to prevent Greece's debt crisis from spreading to other Eurozone countries the European Union unveiled USD 670 billion emergency fund.
Sensex gained 348pts; metal, realty gain
Markets were northbound and crossed 5100 without much difficulty. Nifty hovering around 5150 suggesting strength in short covering rally.
Sensex traded above 17000 owing to buying in metal, realty, banks, oil&gas, auto and IT stocks.
At 11.50 am, Sensex gained 348.28 points or 2.08pc at 17117.39, and the Nifty lost 113.70 points or 2.27pc at 5131.75.
Among the largecaps, Kotak Mahindra Bank was the top gainer with close to 6pc gain. Tata Steel, Jindal Steel, Sterlite Industries and IDFC surged 4 to 4.5pc. The only losers in Nifty were Cipla, BPCL and Reliance Communications.
Index heavyweight Reliance was trading at Rs 1,062.65 up 2.79pc from its previous close of Rs 1,033.85. Tech major Infosys was trading at Rs 2,658.65 up 1.49pc from its previous close of Rs 2,619.65. Refinery major HPCL was trading at Rs 329.70 down 1.55pc from its previous close of Rs 334.90.
Cigarette major ITC was trading at Rs 259.50 up 0.21% from its previous close of Rs 258.95. Hindustan Lever was trading at Rs 236.95 up 0.96% from its previous close of Rs 234.70.
Nifty bounces back on EU fund news
The news of European Union unveiling USD 670 billion emergency fund in the early hours of Monday, May 10 helped Benchmark Nifty recover to sharp sell-off last week.
Nifty was heading toward the 5100 mark. Buying were seen in metal, banking, capital goods, realty, technology and cement companies' shares. Heavyweight Reliance Industries shot up 2pc.
At 9:02 am, the Sensex was trading at 16974, up 205 points and the Nifty was at 5082, up 64 points.
Among the frontliners, the gainers in the early trade were ABB, Unitech, Suzlon Energy, Tata Steel, Tata Motors, Kotak Mahindra Bank, Hindalco, Jindal Steel and Reliance Industries.
However, Cipla slipped 4pc on disappointing results. Reliance Power dipped 1pc and RNRL tanked 5pc post Supreme Verdict.
Midcap & Smallcap space:
Dalmia Cements shot up 3.3pc as KKR will invest Rs 750 crore in the company.'
Ansal Properties surged 4.5pc on fund rasing plan.
Dish TV rose 5.5pc and Piramal Healthcare up 1.4pcon good results.
Asian markets were trading 0.4 to 1.3pc higher. However, only Shanghai fell 0.85pc.