Infosys, Reliance Industries and Sun Pharma contributed the most to the advances on the Sensex.

Domestic stock markets started Monday's session on a higher note tracking positive global cues. The S&P BSE Sensex rose as much as 287.74 points to touch 39,023.97, while the Nifty50 barometer of the National Stock Exchange surged by 65.9 points to 11,618.40. The gains on Dalal Street were led by buying in IT and pharma stocks. Heavyweights Infosys, Reliance Industries, Sun Pharma and HDFC Bank contributed the most to the advances on the Sensex. At 9:31 am, the 30-share benchmark index traded 170 points or 0.44 per cent higher at 38,906.23, and the Nifty was at 11,591.35, up 38.85 points or 0.34 per cent from the previous close.

Top advancers on the 50-scrip index were Infosys, Yes Bank, Sun Pharma, Dr Reddy's and Tata Motors, trading between 1.44 and 4.52 per cent higher.

The Nifty IT index was trading 1.41 per cent higher at that time.

Infosys was the top gainer on both the bourses, after the IT major came out with its June quarter results post market hours on Friday. The company posted better-than-expected 5.3 per cent rise in its June quarter net profit, and raised revenue growth forecast for the current fiscal.

Besides the rally in Infosys shares, firm global cues too drove investor sentiment here, traders were quoted as saying in news agency Press Trust of India (PTI) report. Asian shares advanced on Monday as investors breathed a sigh of relief after encouraging Chinese data suggested the world's second-biggest economy may be starting to stabilise thanks to ramped-up stimulus from Beijing. MSCI's broadest index of Asia-Pacific shares outside Japan gave up losses to be 0.2 per cent higher at 526.72 points.

Investors are now awaiting wholesale price index (WPI) data, scheduled to be released later in the day.

On Friday, Sensex ended 87 points or 0.22 per cent lower at 38,736 and the NSE Nifty 50 Index dropped 30 points or 0.26 per cent to settle at 11,552.

On a net basis, foreign institutional investors sold equities worth Rs 850.11 crore on Friday, while domestic institutional investors purchased shares to the tune of Rs 940.12 crore, provisional data available with stock exchanges showed.

(With inputs from Reuters)