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The BSE Sensex jumped over 200 points and the Nifty was trading 1 per cent higher on Monday, heading for their first winning session in three.
Technology stocks lead on weaker rupee - Infosys Ltd surged 3.7 per cent.
Lenders gained ahead of the Reserve Bank of India policy review due on Tuesday. State Bank of India gained 0.5 per cent while ICICI Bank added 0.6 per cent.
The RBI is seen keeping rates on hold but could announce liquidity-enhancing measures such as a cut in the statutory liquidity ratio (SLR).
However, Coal India Ltd fell 1.1 per cent after it missed the production target for July.
Copyright @ Thomson Reuters 2013
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