The broader Nifty of the National Stock Exchange climbed 181.15 points or 0.94 per cent to 19,411.75.
In the three sessions to Monday, Sensex has rallied around 1,367 points and Nifty by 422 points to trade above 19,400 level.
Among the Sensex firms, Larsen & Toubro, Axis Bank, Tata Steel, Bajaj Finance, Power Grid, Asian Paints, Mahindra & Mahindra and Bajaj Finserv were the biggest gainers.
State Bank of India, Hindustan Unilever, Tata Motors and Titan were the laggards.
“Optimism continued as soft US payroll data and expectations of moderation in monetary tightening by the Fed supported the sentiment. Since most of the headwinds are global in nature, investor sentiment has shifted to domestic-oriented businesses, where festive demand is healthy,” said Vinod Nair, Head of Research at Geojit Financial Services.
In the broader market, the BSE smallcap gauge jumped 1 per cent and midcap index rallied 0.90 per cent.
“Markets started the week on a firm note and gained nearly a per cent, in continuation of the recent rebound. Markets are largely mirroring the rebound of the US markets,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said.
Among the indices, capital goods advanced 1.68 per cent, metal jumped 1.64 per cent, industrials (1.42 per cent), utilities (1.39 per cent), commodities (1.38 per cent), oil & gas (1.33 per cent), energy (1.27 per cent), realty (1.19 per cent), bankex climbed 0.74 per cent and auto (0.65 per cent).
Consumer Durables emerged as the only laggard.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the green.
European markets were trading lower. The US markets ended in positive territory on Friday.
Global oil benchmark Brent crude climbed 1.35 per cent to USD 86.04 a barrel.
Foreign institutional investors (FIIs) offloaded equities worth Rs 12.43 crore on Friday, according to exchange data.