The 30-share index, which had gained 150.61 points in highly volatile trading session on Friday, climbed 121.60 points, or 0.88 per cent, to 14,008.75 points, as metals, realty, capital goods and banking sector stocks rose.
Similarly, the wide-based National Stock Exchange index Nifty rose 31.10 points to 4,269.60 after slipping temporarily to 4,230.50 points at the outset.
Stock brokers said expectations of an acceleration in economic reforms and more spending on the infrastructure sector by the comeback UPA government, mainly buoyed on trading sentiment.
The allocation of the key portfolio of Finance to Pranab Mukherjee also generated buying activity on the bourses, they added.
Major gainers on the Sensex, are DLF Ltd up 2.80 per cent to Rs 343.30, Bharti Airtel 2.33 per cent to Rs 877.80, Tata Steel 2.24 per cent to Rs 371.40, Sterlite Industries 2.17 per cent to Rs 518.95, Larsen and Toubro 1.42 per cent to Rs 1,319.90, State Bank of India 0.13 per cent to Rs 1,734.
Meanwhile, the Hong Kong's Hang Seng was down one per cent and Japan's Nikkei 1.5 per cent in early trade.
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