A benchmark index of Indian equities markets, the 30-scrip Sensitive Index (Sensex), on Monday surged 559.21 points or 2.43 percent during the afternoon session.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading 187.70 points or 2.69 percent up at 7,168.65 points.
The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 23,223.43 points, was trading at 23,545.33 points (at 1.43 p.m.) in the afternoon session, up 559.21 points or 2.43 percent from the previous day's close at 22,986.12 points.
The Sensex touched a high of 23,622.64 points and a low of 23,197.67 points in the trade so far.
Good buying was observed in capital goods, realty, industrials and basic materials sectors.
The capital goods index gained by 6.70 percent, realty index moved up by 6.32 percent, industrials index got augmented by 5.57 percent and basic materials index increased by 5.03 percent.
Market benchmark Sensex zoomed over 400 points to rise above 23,000-mark in early trade on Monday following widespread gains as investors widened their bets amid a firming trend in other Asian markets.
However, caution prevailed in view of muted macroeconomic data.
The 30-share index, which gained 34.29 points in the previous session, added 404.23 points or 1.75 per cent to 23,390.358 with all the sectoral indices led by metal, realty and oil&gas leading the gains.
The NSE Nifty reclaimed the 7,100-mark by climbing 130.55 points, or 1.87 per cent, at 7,111.50.
Brokers said a flurry of buying by investors in blue-chips available at an attractive levels amid a firming trend at other Asian markets, tracking weakened gains at the US markets, mainly influenced the sentiment.
Meanwhile, industrial production declined for the second month in a row, registering negative growth of 1.3 per cent in December, while retail inflation in January rises marginally to 5.69 per cent from 5.61 per cent in December.
Among other Asian markets, Hong Kong's Hang Seng was trading higher by 2.62 per cent, while Nikkei surged by 5.12 per cent in early trade as investors shrugged off a contraction in Japan's economy during the final quarter of 2015. Shanghai's Composite index, however, was down 1.57 points.
The US Dow Jones Industrial Average ended 2 per cent higher on Friday.