The Sensex opened with a positive gap of points at 31 points at 7,717, which turned out to be the low for the day.
Sustained buying in heavyweights saw the index zoom to a high of 7,906 - an intra-day gain of 220 points from the last weekend close.
The Sensex finally closed with a gain of 207 points (2.7%) at 7,892.
The Nifty gained 55 points to close at 2,371.
Infosys [Get Quote] zoomed over 4% (Rs 107) to Rs 2,524. Satyam [Get Quote] advanced 6% (Rs 34) to Rs 606. While TCS [Get Quote] was up Rs 38 at Rs 1,400, Wipro [Get Quote] added Rs 8 to Rs 365.
SBI [Get Quote] advanced 3.4% (Rs 27) to Rs 838. Reliance gained 2.9% (Rs 21) to Rs 763. ONGC [Get Quote] was up Rs 11 at Rs 929.
While HLL [Get Quote] was up Rs 4 at Rs 161, ITC added 4% (Rs 5) to Rs 120.
Maruti [Get Quote] zoomed 6.6% (Rs 34) to Rs 550. Bajaj was up 2.7% (Rs 45) at Rs 1,705. Tata Motors [Get Quote] added Rs 12 to Rs 473. Hero Honda was up Rs 11 at Rs 707.
Dr. Reddy's was firm right through the session, and closed with a gain of Rs 16 at Rs 807. Cipla was up Rs 12 at Rs 360.
BHEL gained 5.5% (Rs 60) to Rs 1,150. L&T moved up over 4% (Rs 56) to Rs 1,399. HDFC [Get Quote] added Rs 29 to Rs 968. ICICI Bank [Get Quote], Reliance Energy [Get Quote], Tata Power [Get Quote], Tata Steel [Get Quote], NTPC, ACC and Grasim [Get Quote] also finished with gains.
Bharti declined 2% (Rs 7) to Rs 323. Hindalco [Get Quote] slipped 3% (Rs 4) to Rs 114.