The Sensex and the Nifty rose about 0.5 per cent at the closing session on Monday on sustained buying by funds and retail investors buoyed by 4.8 per cent GDP growth in the September quarer.
The 30-share BSE Sensex ended up 106.08 points (0.51 per cent) at 20,898.01 and the 50-share NSE index Nifty was ended up 41.75 points (0.68 per cent) at 6,217.85.
Barring Oil & Gas, all other BSE sectoral indices ended in the green.
Among them, Healthcare, Capital Goods, Metal and Banking indices gained the most by 2.00 per cent, 1.61 per cent, 1.16 per cent and 1.00 per cent, respectively. Only Oil & Gas index was down 0.38 per cent.
Sun Pharma, Jindal Steel, Wipro, L&T and BHEL were the top five Sensex gainers, while the top five losers were HUL, ONGC, GAIL, Maruti and Hindalco.
A report by Equentis Capital said: “Global markets are closely watching US Fed action this month. US Fed meeting is scheduled on December 17-18. Good economic data increases probability of reducing Fed's aggressive bond-buying programme from December month meeting, as Fed signalled that US Central Bank was on the way of tapering its stimulus.”
Most European shares were down as a report showed that Spanish manufacturing unexpectedly declined last month.
Asian shares were mixed as China’s manufacturing output beat analyst estimates and retail sales in the US headed for the weakest holiday results since 2009.
Investors were looking ahead to a slew of US economic data scheduled to be released this week, including on third quarter gross domestic product estimates and November non-farm payrolls.