Both indices Sensex and Nifty hit two-and-a-half week highs on fresh buying, mainly in realty, IT, banking, refinery and power sectors despite mixed Asian cues.
IT stocks advanced on solid economic data in the US. Vedanta rose after the company said it has received relevant consent, licence and approvals to commence iron ore mining operations in Goa for some of its leases.
In the global market, Brent crude oil futures edged lower, touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy.
At one point, the BSE Sensex was trading higher by 171.38 points, or 0.61 per cent, at a 2-1/2 week high of 28,407.77 after moving in a range of 28,417.59 and 28,228.27 in the morning trade. The barometer rose 131.47 points, or 0.47 per cent, to 28,367.86 at 1149 hours.
The 50-share Nifty too at one stage rose 40.85, or 0.48 per cent, to 8,605.45 after moving in a range of 8,621.55 and 8,564.45. At 1149 hours, it was up 43.55, or 0.51 per cent, at 8,608.15.
The stock that gained the most was HDFC (2.23 pct), followed by Lupin, Hindalco, TCS and HDFC Bank.
Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 93.74 crore last Friday, as per provisional exchange data. Domestic institutional investors (DIIs) net bought shares worth Rs 34.08 crore.
In overseas markets, Asian stocks were mixed. US stocks edged lower last Friday as a solid US jobs report for July raised bets for an increase in interest rate by the US Federal Reserve as soon as September.
