Market turned more decisive as the Sensex on Monday jumped over 377 points - its biggest single-day gain in about a month - and the NSE Nifty scaled the 8,700 mark in anticipation of a rate reduction at the RBI policy meet on Tuesday.

Improving sales numbers from automakers, a sign of revival in discretionary spending, the rupee holding higher against the dollar and no further flare-up on the geopolitical front added fuel to the rally.

A rebound globally on easing worries about future of German giant Deutsche Bank and a firming oil price provided a perfect setting.

Sentiment was buoyed after a monthly survey showed that the manufacturing PMI print for September, at 52.1, came in above the 50 mark for the ninth month, signaling expansion.

The 30-share BSE barometer after opening higher hit a high of 28,273.02 before settling at 28,243.29, a significant jump of 377.33 points, or 1.35 per cent, its biggest single-session rally since September 6 when it had climbed 445.91.