Benchmark indices BSE Sensex and NSE Nifty ended with gains of about 1 percent on Monday tracking global cues, mainly centrist candidate Emmanuel Macron qualifying for the May 7 run off in the first round of French presidential elections held on Sunday.
The Sensex closed 290 points higher at 29,656 while the 50-scrip Nifty ended at 9,218, up 98 points.
"France led gains in European equities as investors speculated that pro-growth centrist candidate Emmanuel Macron will win the presidential election after he made it through to the second round," brokerage Motilal Oswal Securities said in a note.
"Strong global cues and better than expected quarterly results by HDFC Bank, ACC and UltraTech lifted market. Moreover, fall in oil price, hopes of GST implementation and positive domestic cues boosted the market sentiment. Asian markets like Nikkei surged nearly 1 percent and European markets gained between 2-4 percent after French election (results)," the brokerage added.
The rally was also supported by upbeat Q4 results by HDFC Bank last week, triggering a spurt in many bank stocks, including state-owned lender Vijaya Bank that hit a fresh 52-week high of Rs 76.80 before closing 8.74 percent higher at Rs 75.25.
The US Federal Reserve's observation on GST's potential to boost India's GDP growth by up to 4.2 percent also added to the positive mood on the exchanges.
Top Sensex gainers were GAIL, Axis Bank, HDFC Bank and Larsen & Toubro. HDFC Bank shares closed 2.41 percent higher at Rs 1,533 on better business prospects. "With tier 1 capital of 13.3%, strong capacity amid the moderate growth cycle and significant digitization initiatives, the bank is well placed to benefit from the expected pick-up in the economic growth cycle," Motilal Oswal Securities said in another note.
Later in the day, Reliance Industries will be declaring its Q4 results. The stock closed 1.19 percent higher at Rs 1,416.
Apart from Vijaya Bank, other stocks that hit a new 52-week high included India Cements, Hathway Cable, Dilip Buildcon, Future Retail, South Indian Bank and Piramal Enterprises.
The Indian rupee closed at 64.44 to the US dollar on Monday, a gain of 0.27 percent from the Friday closing of 64.61.
Gold prices lost Rs 350 to close at Rs 29,650 per 10 gm while silver ended at Rs 41,700 per kg.
Among major companies, Wipro, ICICI Prudential Life Insurance, IDFC Bank, LIC Housing Finance and Zensar Technologies will be declaring their Q4 results on Tuesday.