The Nifty rose for fourth day by gaining 60 points to bring up an over 4-month high and finish above the crucial the 8,800-level ahead of the key Reserve Bank of India policy review due this week.
The positive momentum saw buying in shares, particularly in realty, pharma, banking and financial stocks.
Sentiment was upbeat on expectations that RBI will reduce interest rates at its policy review meet on Wednesday.
Overseas, Asian markets rose as banks followed a rally in the US sparked by the Donald Trump administration's plan to relax financial regulations.
Europe was also trading higher in its late afternoon trade.
The NSE 50-share Nifty index opened higher at 8,785.45 and hovered between 8,814.10 and 8,770.20 before closing at 8,801.05, a gain of 60.10 points, or 0.69 per cent, from its previous close. The benchmark last ended at this level was on September 23, 2016, at 8,831.55.
It saw an intra-day movement of about 43.90 points.
Realty rose 1.94 per cent, pharma 1.48 per cent, FMCG 1.14 per cent and financials 1 per cent. However, PSU bank fell 0.37 per cent and metal 0.28 per cent.
Major index gainers were Ambuja Cements (4.51 per cent), Sun Pharma (4.31 per cent), ACC (3.95 per cent), Auro Pharma (3.18 per cent), ICICI Bank (3.11 per cent) and Axis Bank (1.55 per cent).
However, Dr Reddy's, Cipla, Bank of Baroda and ONGC fell by up to 1.52 per cent.
A total of 1,112 scrips advanced and 549 declined while 77 remained unchanged. The total number of securities that hit their price bands was 148.
Turnover in the cash segment dropped to Rs 24,045.89 crore, from Rs 26,735.93 crore last Friday.
A total of 15,065.17 lakh shares changed hands in 95,32,073 trades. The market capitalisation of NSE stood at Rs 11,439,249 crore.
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