Equity benchmark Sensex rallied around 515 points on Monday while the NSE Nifty closed at a fresh peak, led by gains in RIL, ICICI Bank and HDFC Bank amid a mixed trend in global markets.
A steady decline in daily COVID-19 caseload also strengthened investor sentiment, brokers said.
The 30-share BSE Sensex ended 514.56 points or 1% higher at 51,937.44, and the broader NSE Nifty surged 147.15 points or 0.95% to its fresh closing record of 15,582.80.
Reliance was the top gainer in the Sensex pack, surging over 3%, followed by ICICI Bank, Bharti Airtel, Dr Reddy, Maruti and ITC.
On the other hand, M&M, Infosys, IndusInd Bank, L&T, and Sun Pharma were among the laggards.
Elsewhere in Asia, bourses in Shanghai and Seoul ended on a positive note, while Hong Kong and Tokyo were in the red.
Equities in Europe were trading on a mixed note in mid-session deals.
India reported the lowest daily new coronavirus infections in 50 days with 1,52,734 cases, taking the tally to 2,80,47,534 on Monday, while the active caseload declined to 20,26,092, the Health Ministry said.
Meanwhile, international oil benchmark Brent crude surged 1.08% to trade at $69.46 per barrel.