The NSE Nifty climbed 68.95 points, or 0.92 percent, at 7,579.15.
Mumbai: Market benchmark Sensex surged over 232 points to 24,950.31 in early trade Monday on widespread gains as investors widened their bets amid a firming trend in other Asian markets.
However, caution prevailed in view of muted factory output data, which was released on Friday and inflation data, slated for later in the day.
The 30-share index, which gained 94.65 points on Friday, added 232.32 points or 0.94 percent to 24,950.31 with banking, realty and auto sector indices leading the rally.
On similar lines, the NSE Nifty climbed 68.95 points, or 0.92 percent, at 7,579.15.
Brokers said a flurry of buying by investors in blue-chips supported by sustained foreign fund inflows and a firming trend at other Asian markets, tracking weekend gains at the US markets, mainly influenced the sentiment.
Meanwhile, industrial production declined for a third month in a row, contracting by 1.5 percent in January due to poor performance of manufacturing sector and lower offtake of capital goods.
Among other Asian markets, Hong Kong's Hang Seng was trading higher by 1.35 percent, while Nikkei surged by 2.08 percent in early trade. Shanghai's Composite index was quoting 2.79 percent higher.
The US Dow Jones Industrial Average ended 1.28 percent higher on Friday.