The BSE 30-shares Sensex ended the day 387.69 points or 1.92 per cent higher at 20,605.08. The broad-based National Stock Exchange NSE Nifty index spurted by 119.90 points, or two per cent, to 6,115.35.
Following the uptrend in the market, investor wealth surged Rs 1,03,745 crore to Rs 67,42,881 crore.
"Over the weekend, Iran and six world powers reached a breakthrough deal early on Sunday to curb Tehran's nuclear program in exchange for limited sanctions relief...following this development, Crude prices have fallen 2% to USD 108 per barrel," said Sanjeev Zarbade, Vice President - Private Client Group Research, Kotak Securities.
Among the 30-Sensex constituents, 27 ended the day in green, led by BHEL that surged 5.22 per cent.
From the 13 BSE sectoral indices, barring IT, rest saw gains, with Capital Goods sector emerging as the winner.
Overall, 1,435 scrips advanced on the BSE, while 1,015 declined and 166 remained unchanged.
"Positive global cues and strong opening of European indices today boosted the market sentiment," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.