The wider Nifty50 of the National Stock Exchange held the 10,500-mark and provisionally closed (at 3.30 p.m.) higher by 84.80 points or 0.81 per cent at 10,539.75 points.
Vinod Nair, Head of Research, Geojit Financial Services, said: "On Monday, market reversed from previous day's losses owing to positive global cues and expectation of marginal decline in January CPI (Consumer Price inflation) inflation today".
The 30-share Sensex recovered by 260.12 points, or 0.76%, to 34,265.88 in opening trade.
The Indian equity markets will remain closed on Tuesday (February 13) for Mahashivratri.
Pence raises prospect of US-NKorea talks, Seoul seeks to lower tensions
Moon met Kim Yo Jong and the North's ceremonial head of state Kim Yong Nam for talks and lunch at the Blue House today. North Korea has spent years developing its military, saying it needs to protect itself from USA aggression.
SBI which reported its Q3 earnings on Friday was the top Sensex loser. The lender, in contrast, reported net profit of Rs 2,610 crore for the October-December quarter of the last fiscal, 2016-17.
Gains in all sectors helped the pan-European STOXX 600 index rise 1.2 percent by 0812 GMT, after ending at its lowest level since August on Friday.
In the S&P BSE 500 index Bajaj Electricals, HEG, Rain Industries, Fortis Healthcare, Jet Airways, 8K Miles, Shankara Building Products, SAIL, Polaris Consulting rose 10-20 percent in the week gone by.
The BSE market breadth was bullish as 1,028 stocks advanced as against 224 declines. The UK's FTSE and Germany's DAX also rose more than 1 percent.
It finally settled 294.71 points, or 0.87 per cent, higher at 34,300.47. It traded at 64.28 to a dollar at 11.20 am, against Friday's close of 64.40.