Mumbai: The Sensex on Monday spurted over 700 points to scale the 34,000-mark, as investors boosted purchases after a string of declines had taken the barometer indices to a 7-month low last week.
The NSE's Nifty closed slightly above the 10,200-mark.
All the sectors on the BSE and NSE closed in the green.
Banking, finance and healthcare stocks, which had taken a beating recently, saw fresh investor interest.
The Nifty settled 220.85 points, or 2.20 per cent, higher at 10,250.85 points. The Sensex, which had opened at 33,549.88, gained 718.09 points, or 2.15 per cent, to close at 34,067.40 points.
The Sensex swung over 800 points, touching a high of 34,154.60 points and a low of 33,341.80.
The top gainers on the BSE were dominated by banking stocks. ICICI Bank jumped 11.46 per cent, while State Bank of India gained 7.90 per cent. Private lender Axis Bank closed 4.96 per cent higher.