Accordingly, investors' sentiments were buoyed as India exited the technical recession phase with healthy GDP numbers, improving auto sales and steady PMI manufacturing data.
Besides, supportive global cues such as the passage of the US Stimulus bill in the House of Representatives and bargain hunting after the selloff seen last week aided in the upward movement of the indices.
However, FIIs inflows were miniscule at just Rs 125.15 crore.
Globally, Asian stocks rose broadly on Monday reflecting investor optimism about the vaccine rollout and the stimulus-driven global economic recovery.
Similarly, European stocks rose as calm returned to bond markets after last week's sell-off.
In the day's trade, the two key indices opened higher but witnessed a sell-off during the mid-afternoon period post which the Nifty rose once again.
Among sectors, media, auto, metals, banks, pharma gained the most while PSU Bank index ended in the negative.
Consequently, the Siamp;P BSE Sensex gained 749.85 points, or 1.53 per cent to 49,849.84 points from the previous close of 49,099.99.
The NSE Nifty50 on the National Stock Exchange closed at 14,761.55, gaining 232.40 points, or 1.6 per cent, from its previous close.
"Nifty has made an inside bar after the sell-off seen on Friday," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"While this is a mildly positive signal, it needs to soon fill the downgap between 14,919-15,065 to nullify the recent weakness."
According to Vinod Nair, Head of Research at Geojit Financial Services "The auto sector was in focus today as the sales numbers for February were in favour of manufacturers."
"Global markets were on its upward rally owing to the much-anticipated US stimulus package being approved and reports regarding the progress in the vaccines."
In addition, S.Ranganathan, Head of Research at LKP Securities said "Positive global cues and US yields retreating from highs led to a strong opening today with indices sustaining gains throughout the day."
"The broader markets saw energetic buying momentum across the PSU basket and sectors like paints and speciality chemicals."
Mumbai, March 1
India's key equity benchmark indices staged a bounce back on healthy Q3FY21 GDP growth numbers during Monday's Trade session.
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