Extending its gains for the fourth consecutive session, equity benchmark Sensex surged about 296 points to recapture the key 49,500-level on Monday, led by intense buying in pharma and energy stocks.

At the closing bell, the 30-share BSE index quoted 295.94 points or 0.60 per cent higher at 49,502.41.

Similarly, the broader NSE Nifty jumped 119.20 points or 0.80 per cent to 14,942.35.

L&T was the top gainer in the Sensex pack, rallying over 4 per cent, followed by Dr Reddy's, Sun Pharma, NTPC, IndusInd Bank, PowerGrid, ONGC and M&M.

On the other hand, UltraTech Cement, Infosys, Reliance Industries and HCL Tech were among the laggards.

"Domestic equities continued to defy concerns of rising COVID-19 cases and extended mobility restrictions by several states by extending gains for the fourth consecutive trading day," said Binod Modi Head-Strategy at Reliance Securities.

Notably, sharp rebound in metals, pharma, auto and PSU banks supported market's rally. Most of key sectoral indices traded in green.

"Favourable global cues, steady March quarter earnings along with favourable commentary, liquidity support announced by the RBI and absence of nationwide lockdown have aided domestic equities to shrug off rising COVID-19 cases in the country," Modi noted.

Elsewhere in Asia, bourses in Shanghai, Tokyo and Seoul ended on a positive note, while Hong Kong was in the red.

Stock exchanges in Europe were largely trading with losses in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.53 per cent higher at USD 68.64 per barrel.