The National Stock Exchange stopped trading in early session because of the technical outage as deals were not getting updated in the system and officials confirmed that there will be intimations to update investors.
Buying was witnessed in key frontline shares of IT, technology, telecom and realty.
Hectic short-covering started on optimism about impending quarterly results. Blue-chip TCS is due to announce numbers on July 13. There is also renewed positivity over global growth after last Friday's higher-than-expected US employment data.
The 30-share benchmark Sensex hovered between 31,602.50 and 31,471.41 before trading at 31,568.22 at 1141 hours, up 207.59 points, or 0.66 per cent.
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Major gainers were TCS (3.29 per cent), Bharti Airtel (2.63 per cent), Tata Motors (2.61 per cent), Lupin (2.31 per cent) and Wipro (2.10 per cent).
Asian markets were trading higher after a stronger- than-expected US employment numbers helped restore confidence in global growth.
US stocks finished higher last Friday as technology stocks rebounded from a slump and the jobs report showed gains for June.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 522.08 crore last Friday, as per provisional data.