Benchmark indices started the week on a positive note, erasing some of the previous session's losses as IT and metal shares rallied on Federal Reserve Chair Powell's hint on US interest rate trajectory, though the Nifty 50 index continued to face resistance at around 25,000 levels.

The index pulled back from the highs of the day, and at close, the Sensex closed up 329.06 points or 0.40 percent at 81,635.91, while the Nifty 50 was up 97.65 points or 0.39 percent at 24,967.75. Broader market indices underperformed key indices with BSE Mid and Smallcap indices ending on a flat note.

On the sectoral front, IT index rose 2.3%, Realty index added 0.7%, metal index jumped 0.6%.

Infosys, TCS, HCL Technologies, Wipro and Hindalco Industries were among major gainers on the Nifty, while losers were Apollo Hospitals, Nestle India, Bharat Electronics, Adani Enterprises and SBI Life.

In stock-specific action, paper stocks like Emami Paper, JK Paper rose up to 20% after Centre set a minimum price on import of packaging material, Nazara shares hit a three-month low, Mazagon Dock rose 2% on buzz of negotiations for a Rs 70,000 crore plan for six submarines with Germany's Thyssenkrupp.

160 stocks touched their 52-week highs on the BSE, including TVS Motor, eClerx Services, Jindal Stainless, Nykaa, UPL, HDFC AMC, Paytm, UNO Minda, Delhivery, Maruti Suzuki, M&M, Cummins India, Sai Life Sciences, among others.