Benchmark Sensex and Nifty spurted over 1 per cent on Monday following hectic buying in IT, oil and gas and banking shares bolstered by firm global trends.

Rising for a second straight session, the 30-share BSE Sensex rallied 760.37 points or 1.41 per cent to settle at 54,521.15. During the day, it jumped 795.88 points or 1.48 per cent to 53,760.78.

The broader NSE Nifty advanced 229.30 points or 1.43 per cent to 16,278.50 as 41 of its constituents advanced.

Stock markets opened on a positive note following gains in Asian markets. Key indices extended gains in afternoon session after buying in IT, banking, teck and capital goods stocks.

"Gains in frontline blue-chip stocks such as Infosys, Tech Mahindra also helped to lift the markets," said Narendra Solanki, Head Fundamental Research -Anand Rathi-Investment Services.

Among Sensex constituents, IndusInd Bank rose the most by 4.36 per cent.

IT companies ended their losing run with Infosys rising by 4.16 per cent, Tech Mahindra by 3.67 per cent, Wipro by 2.77 per cent and TCS by 2.23 per cent.

Reliance Industries rose by nearly 1 per cent after a spurt in crude oil prices.

Bajaj Finserv spurted by 3.46 per cent, Axis Bank by 3.31 per cent, Kotak Bank by 3.25 per cent, ICICI Bank by 2.78 per cent and SBI by 2.35 per cent.

Ultratech Cement, L&T, Tata Steel, HCL Tech, Bharti Airtel, Bajaj Finance also gained.

On the other hand, Dr Reddy's fell the most by 1.7 per cent while HDFC twins also dropped up to 1.19 per cent. M& M dropped by 0.86 per cent and Maruti by 0.84 per cent.

"Strong US retail sales data scaled down the worries of an aggressive rate hike higher than 75bps providing the much-needed optimism to global equities. The European Central Bank, in its meeting this week, is set to increase its interest rates for the 1st time to contain record-high inflation," Vinod Nair, Head of Research at Geojit Financial Services said.

Sentiments were upbeat as a report suggested that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion, analysts said.

S Ranganathan, Head of Research at LKP securities said, "The 1.5% upmove seen today in the benchmark indices reflects the optimism behind the progress of the south-west monsoon as the BFSI & IT index led from the front with good support coming in from the broader market stocks."

Among sectoral indices, Nifty IT index snapped its five-day losing streak and jumped the most by 3.17 per cent. Nifty Metal rose by 2.49 per cent, Banking by 1.95 per cent and Consumer Durables by 1.45 per cent.

In the broader market, the BSE midcap gauge jumped 1.49 per cent and smallcap index climbed 1.39 per cent.

Among BSE sectoral indices, IT jumped the most by 3.07 per cent, followed by teck (2.96 per cent), metal (2.72 per cent), bank (2.08 per cent), basic materials (1.97 per cent) and capital goods (1.96 per cent).

FMCG was the only laggard.

Market breadth was positive as of the total 3,612 share traded on BSE, 2,350 scrips advanced while 1,095 stocks declined.

"Markets are largely mirroring their global counterparts, especially the US while domestic factors like macroeconomic data and earnings cause volatile swings in between," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Meanwhile, the rupee slid to the 80 level against the US dollar for the first time in intra-day trade as crude oil rebounded by 2.18 per cent to USD 103.4 per barrel.

In Asia, markets in Seoul, Shanghai and Hong Kong ended significantly higher.

Markets in Europe were trading in the green during mid-session deals. The US markets had ended sharply higher on Friday.

The BSE barometer climbed 344.63 points or 0.65 per cent to settle at 53,760.78 on Friday and the Nifty advanced 110.55 points or 0.69 per cent to 16,049.20.

Foreign institutional investors went in selling mode again as they offloaded shares worth Rs 1,649.36 crore in the capital market on Friday, as per exchange data.