The 30-scrip S&P BSE Sensex on Tuesday opened on a higher note during the morning session of the trade railing over 300 points, led by gains in Infosys, HDFC, Tata Motors, Axis Bank, and ICICI Bank. Towards the end of the day, it was up by 445.91 points and ended at 28,978.02.
Meanwhile, Nifty50 reached 8,943 points led by gains in oil and gas, realty, capital goods, banks, consumer durable and auto stocks. It surged 133.35 points till the market closed.
Moreover, services sector growing at its fastest pace in over three-and-half years in August and the rupee rising against the dollar also supported trading sentiment.
The gauge had rallied 108.63 points in the previous session on Friday. Stock exchanges remained closed yesterday on account of 'Ganesh Chaturthi'. The US market, too, was shut due to Labour Day holiday.
Brokers said continued foreign fund inflows and persistent buying by investors amid a firming trend overseas buoyed trading sentiment.
A monthly PMI survey showing that India's services sector growth touched the highest level in over three-and-a-half years of 54.7 in August, from 51.9 in July, too lifted the mood.
Among other Asian markets, Hong Kong's Hang Seng was up 0.39 per cent and Japan's Nikkei gained 0.22 per cent, however, Shanghai Composite Index shed 0.10 per cent in early trade in today.
(With PTI inputs)