In early trade, the Sensex surged 470 points to recover the 60,000 mark.

In early trading on Monday, the BSE index Sensex jumped 470 points to trade beyond the crucial 60,000-point barrier, owing to cross-counter purchasing.

The 30-share benchmark began on a strong note, reaching an early high of 60,242 before easing off some of its gains. It was recently quoted at 60,077.67, up 333.02 points, or 0.56 percent, from its previous close.

Similarly, the NSE Nifty was trading at 17,939.65, up 126.95 points or 0.71 percent.

FMCG, auto, IT, and financial stocks were the main drivers of Sensex. The top gainers were ITC, Maruti, TCS, Kotak Bank, and ICICI Bank.

Twenty-one of the Sensex's members were trading in the green.

"The record-high inflation of 5% in the Eurozone, following the inflation patterns in the US, is emerging as a big challenge to central banks internationally," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. With the ECB and other top central banks, especially those in emerging countries, turning to tighten mode, there is now a clear probability of three rate hikes by the Fed in 2022." He noted that the rise in the US 10-year yield to 1.76 percent and the strengthening of the US dollar are indicators of equities market headwinds.

He also stated that the IT majors' and HDFC Bank's Q3 results, which are expected to be released this week, will likely set the tone for the critical IT and banking segments.

In other parts of Asia, bourses were divided ahead of US inflation data.

According to stock exchange data, foreign institutional investors (FIIs) were net purchasers in the capital market on Friday, buying shares worth Rs 496.27 crore.