Sensex (BSE sensitive index) started higher at 4560.31 and moved up further to the day's high of 4585.39 before closing at 4558.23 with a net gain of 70.36 points compared the last Friday's close of 4487.87. The BSE-100 index also gained 44.49 points at 2034.59 from previous close of 1990.10.

Brokers said several cyclicals, particularly cement shares and most of the pharma scrips, rallied smartly as operators enlarged their positions in the new account. Besides, there were fresh purchases from FIIs and domestic institutions. Operators were optimistic of sustained support by FIIs on anticipation of a turnaround in the Indian economy.

Among the specified scrips, Sun Pharma, Wockhardt, Pfizer, Nicholas, Grasim, Exide, ACC, BSES, Raymond and United Phosp were locked in upper circuit filter afterexhausting the daily limit. Godrej Soaps and Global Trust Bank were the worst hit and registered sharp losses due to selling pressure.

Larsen & Toubro was the most active scrip with a turnover of Rs 147.89 crore of the total volume of business of Rs 1943.57 crore. L&T spurted by Rs 21 to Rs 353.45 on speculative support. Digital Equipment gained by Rs 35.60 to Rs 735, ACC by Rs 17.90 to Rs 242, Zee Telefilms by Rs 120.95 to Rs 2498, Reliance by Rs 3.95 to Rs 170.70, ITC by Rs 15.10 to Rs 951, SBI by Rs 4.40 to Rs 238.95 and TELCO by Rs 15.05 to Rs 262.65. However, Ranbaxy dropped by Rs 10 to Rs 976 and Hindustan Lever by Rs 26.50 to Rs 2553.50 on profit taking.

Meanwhile on the NSE, pivotals staged a smart recovery on revival of heavy buying by both foreign institutional investors (FIIs) and domestic funds even as the Nifty rallied by 18 points.

The market opened on a firm note and prices rallied further to close with widespread gains over a broad front. Mirroring the general trend, the S&P CNX Niftyopened higher at 1292.35 and eased marginally to end at 1309.90, showing a sharp rise of 18.05 over the previous close of 1291.85.