ICICI Bank, the nation's second-largest lender, and Housing Development Finance Corp (HDFC), the country's biggest mortgage lender, gained. Asian stocks advanced the most in almost two months after the dollar rose to a four-month high against the yen and crude oil prices declined, boosting shares of car and consumer electronics makers.
"We are following the global markets rally," said Jayesh Shroff, who helps manage about $7.5 billion at SBI Asset Management Company in Mumbai.
"Until crude oil prices start showing a declining trend, markets will remain volatile." The Sensex rose 206.20, or 1.4 per cent, to 15,395.82, its highest since June 6. The S&P CNX Nifty Index on the National Stock Exchange added 55.40, or 1.2 per cent, to close at 4,572.50.
Crude oil for July delivery fell as much as 0.7 per cent to $133.86 a barrel in New York on Monday on speculation Saudi Arabia will increase production, reducing the risk to global growth from near-record energy prices.
Futures lost 1.4 per cent to $134.86 on June 13. ICICI gained 4.2 per cent to Rs 797.45. HDFC climbed 1.5 per cent to Rs 2,160.60.
Infosys Technologies led gains among software exporters after US stocks climbed on June 13 as some measures of inflation matched economists' forecasts, damping speculation the Federal Reserve will boost interest rates this year. A US government report showed that store sales in May rose 1 per cent, twice as much as economists had forecast.
The US accounts for more than half the sales of Indian software developers, making it their largest market. Infosys, India's second-biggest software exporter, rose 2.2 per cent to Rs 1,907.80.
Wipro, India's third-largest software-services provider, gained 2 per cent to Rs 487.55. Satyam Computer Services, the fourth-largest, added 1.4 per cent to Rs 487.65.
