The Sensex and the Nifty rose for a second straight session on Monday ahead of release of key domestic economic data this week and on hopes the new head of the U.S. Federal Reserve will signal a steady course on policy at an address later this week.
The Sensex came off session highs of 1 percent to close up 0.89 percent at 34,445.75.
The Nifty ended 0.87 percent higher at 10,582.60, closing above 10,500 for the first time in seven sessions.