The Bombay Stock Exchange benchmark Sensex on Monday gained over 72 points to close at a new 32-month high on sustained buying by funds, particularly in metal stocks.
Powered by foreign fund inflows, the index closed 72.20 points higher at 20,117.38, a level last seen in January 2008.
The stocks in metal sector led the rally following a firm trend in the London Metal Exchange where base-metal prices spurted.
Strong markets across Asia also bolstered the sentiment in Mumbai.
Asian bourses rose after reports of increase in corporate spending and a big jump in orders for manufactured goods in the United States, world’s largest economy.
The broad-based National Stock Exchange index Nifty rose by 17.35 points to settle at 6,035.65.
As the buying activity spilled over a wide-front, midcap index rose by 0.33 percent to 8,142.26 and smallcap index by 0.13 percent to 10,280.57.