Strong second quarter results and firm Asian stocks pushed up the Bombay 
Metal stocks gained as metal prices rose on the London Metal Exchange.
The BSE rallied by 282.73 points or 1.26 per cent to 20,448.59 at 1100hrs from its last weekend’s level.
The National Stock Exchange 50-share Nifty also moved up by 85.25 points or 1.25 per cent to 6,151.30.
From the Sensex pack, Cipla shot up by 2.52 per cent, Sterlite Ind by 2.11 per cent, Tata Motor by 1.77 per cent, ICICI Bank by 1.47 per cent, Bharti Airtel by 1.42 per cent, RIL by 1.25 per cent and Tata Steel by 1.09 per cent.
Volatility may remain high this week as traders rolled over positions in the derivatives segment ahead of the expiry of the October 2010 contracts on Thursday.
Asian stocks edged higher after global finance leaders vowed at a weekend meeting to avoid currency devaluations.
The key benchmark indices in China, Hong Kong, Indonesia, Singapore, Japan, South Korea and Taiwan rose by between 0.53 per cent to 1.51 per cent.
Trading sentiment remained bullish after G-20 nations Finance Ministers and Central Bank governors agreed on Saturday to boost cooperation on rebalancing the world economy to help defuse tensions that had sparked fears of trade conflicts.