The BSE Sensex ended at 17,478, up 74 points while the Nifty ended at 5,318, up 22 points.
During the day, the BSE benchmark index touched the day's high at 17,530 and the day's low at 17,382.
According to Hormuz Maloo, Technical Analyst with Geojit BNP Paribas Securities, "The Nifty seems to have taken support at its 200 day moving average last week and bounced upwards strongly.
The 200dma is currently around 5,148 levels. This remains a significant support level. On the upside, we have a small resistance at Friday's high of 5,307 points, which is also the 50 day moving average of the Nifty.
There is a stronger resistance slightly higher at around 5,500 points."
In Asia, Japan's Nikkei average snapped a three-day losing streak on Monday after stronger-than-expected data from China eased worries of an abrupt economic slowdown, while buying by domestic investors provided support.
The index ended at 10,110, up 0.26%. The Hang Seng index ended lower by 0.16%, while the Shanghai Composite index ended higher by 0.47%.
European markets are mixed. At 1600 hours, the DAX was higher by 0.31%, while France's CAC 40 was off 0.30%. Shares in London were unchanged with the FTSE 100 at 5,768.81.
Back home, consumer durable stocks logged smart gains in trade today with the BSE Consumer Durables' index surging nearly 4% at 6,651 levels. Earlier in the day, the index touched the day's high at 6,685 levels and the day's low at 6,514 levels.
From the space, C. Mahendra Exports, Titan Industries, Whirlpool of India and VIP Industries, up 3-17% each, were the prominent gainers. Titan Industries rallied 6% at Rs 243 on reports that the
government allowed the company to import gold directly.
The move would help the Tata Group firm in saving 1% of its operating cost and also it would get good quality gold.
"The company had approached Directorate General of Foreign Trade, under the Commerce Ministry, seeking license for direct gold import.
The company would use gold for its watches and jewellery," reports suggest.
"Interestingly consumer durables sector as a whole is outperforming the benchmarks.
Titan specifically had been quite volatile lately. We think this stock had now got decent support placed near Rs 226 levels, while any meaningful bounce only above Rs 255 should be used to make a fresh entry at this point of time," says Navneet Daga, Derivative Analyst, Choksey Securities.
BSE Capital Goods, Realty and Bankex indices advanced nearly 1-2% each.
Larsen & Toubro, from the Capital goods' space, extended Friday's surge after bagging orders worth Rs 1,875 crore across various business segments in March.
The scrip ended at Rs 1,332, up 2%.
Led by losses in the index heavyweight Reliance Industries, the Oil & Gas index led the losses trading marginally lower at 8,065 levels.
From the auto pack, Mahindra & Mahindra traaded higher by 1.6% at Rs 709 after reporting 25% increase in sales at 47,001 units in March 2012.
Among the Sensex 30 stocks, DLF was the top gainer at Rs 207, up 2.8%. Other prominent gainers included NTPC and TCS, up 2-3% each. The losers from the pack were Bajaj Auto, Hindalco Industries, Sterlite Industries, Reliance Industries and Hindustan Unilever, down 1-2% each.
The broader markets outperformed the benchmark indices. The BSE mid-cap index was up 68 points at 6,415 and the small-cap index advanced 112 points to 6,741 levels.
The overall market breadth was positive as 1,934 stocks advanced against 850 declining ones, on the BSE.