Sanjeev Zarbade, vice president, private client group research, Kotak Securities said the market staged a spectacular rebound on Monday with the Nifty reclaiming the 8,500-level and Sensex hitting the 28,000-mark intra-day.

"Global cues were moderately positive as the US markets closed mildly higher on Friday as investors digested US Fed chairman Janet Yellen's remarks,” Zarbade said.

The major Sensex gainers on Monday were: Bharti Airtel, up 3.55 percent at 389.55; HDFC, up 3.52 percent at 1,306.20; ONGC, up 3.49 percent at 314.70; ITC, up 3.41 percent at 327.90; and Coal India, up 3.27 percent at 358.80.

The losers were: Hindalco Inds, down 1.61 percent at 131.40; Tata Power, down 0.73 percent at 74.55; and Reliance Industries, down 0.17 percent at 810.35

Among the Asian markets, Japan's Nikkei went up by 0.65 percent and Hong Kong's Hang Seng closed higher by 1.51 percent. China's Shanghai Composite Index gained 2.62 percent.

In Europe, London's FTSE 100 was down by 0.44 percent, while France's CAC 40 was higher by 1.12 percent and Germany's DAX Index was up 1.44 percent at the closing in the Indian markets.