Besides, the broader NSE Nifty perked up by 50.50 points to touch a fresh 15-month high at 8,666.30.
The increased stake of 15 per cent can be held by an overseas stock exchange, a depository, a banking company, an insurance company, a commodity derivative exchange.
Shares such as ICICI Bank, Adani Ports, Maruti, HDFC and Tata Motors were the top gainers while Dr Reddy's, ITC, Reliance, Tata Steel and Axis Bank were among the losers.
From the Sensex pack, Maruti Suzuki India, ICICI Bank, Tata Motors, HDFC Ltd, GAIL, SBI, ONGC, Power Grid, NTPC, TCS, M&M, Bharti Airtel and Larsen and Toubro were major gainers.
The dollar was firm against some other overseas currencies which weighed on the rupee.
Shares of the country's largest carmaker Maruti Suzuki plunged 1.44 per cent to Rs 4,485.25 despite reporting a 23 per cent jump in profit for June quarter to Rs 1,486.2 crore.
The Sensex closed up by 292.10 points, or 1.05 percent, to 28,095.34 after reaching its highest since August 11, 2015
The 30-share barometer declined 66.73 points or 0.24 per cent to 27,736.51 with sectoral indices led by bank, metal and teck, trading in the negative zone.
At current share prices, FPIs snapped up shares worth about Rs 17,465 crore in a total of 16 Sensex constituents.
Markets remained marginally low in the previous week, with Sensex and Nifty down 33.26 points and 0.20 points, respectively.
Pai, who was formerly Infosys' CFO as well, is one of the noted personalities in the startup eco-system in India.
The Department of Investment and Public Asset Management in a letter to Central Public Sector Enterprises has asked them to pay dividend at the rate of 30 per cent of net profit or 5 per cent of the networth, whichever is higher.
In Asian, Japan's Nikkei fell 0.89 per cent while Hong Kong's Hang Seng was down 0.40 per cent in early trade. Shanghai Composite was 0.31 per cent down.
Earlier this month Fitch had revised the sector outlook for Indian banks to ‘negative’ from ‘stable’ in part due to the rapid accumulation of stressed assets that have outpaced capital replenishment.
The NSE Nifty ended 55.75 points or 0.65 per cent down at 8,510.10. Intra-day, it touched a low of 8,503.45.
The NSE Nifty was quoting higher by 19.40 points, or 0.22 per cent to 8,585.25.
The benchmark BSE Sensex advanced by 72.87 points, or 0.26 per cent, to 27,988.76 in early trade.
The 128-point rally in the Sensex was aided by reports that a good monsoon season will lead to a revival in farm output as well as income and on optimism over the GST Bill’s passage.
The NSE Nifty went up by 29.05 points, or 0.34 per cent, to 8.557.60.
Brokers said sustained buying by investors in blue chips stocks and good progress in monsoon influenced trading sentiment.
The domestic unit had staged a recovery by gaining 10 paise to 67.10 against dollar in Tuesday's trade on fresh selling of the American currency by exporters and banks.
In asset classes, the dollar held steady against the major currencies with the dollar index holding above the 96-mark.
Shares of state-run banks such as Canara Bank, State Bank of India and Indian Overseas Bank turned buyers' fancy and recorded gains of up to 4.71 per cent.
The benchmark BSE Sensex recovered 58.07 points or 0.20 per cent to 27,804.73 in early trade.
NSEL scam: The court has directed the ED to file its reply on Jignesh Shah's plea on July 26.
Rupee depreciates by 13 paise to end at 67.20 against the US currency owing to sustained dollar demand from banks and importers.
The IPO is exclusively an offer-for-sale by ICICI Bank which will offload 18.3 crore shares or 10 per cent in the life insurer.
Dealers attributed the rupee's fall to increased demand for the US currency, but dollar's weakness against some currencies overseas and a higher opening in domestic equity market restricted the fall.
Close on the heels of the successful Rs. 1,243-crore L&T Infotech IPO, Larsen and Toubro is likely to sell up to 15 percent stake in L&T Technology Services.
The buyback of shares by Bharat Electronics Ltd could generate nearly `2,000 crore for the govt.
For the week, the Sensex rallied 709.60 points, or 2.61 per cent, while the NSE Nifty surged 218.20 points, or 2.62 per cent.
The gain comes after an sustained inflow of foreign funds and the weakening in the dollar against other overseas currencies
The market openings of both Sensex and Nifty come after strong buying activity on Thursday
Concerns lingered after WPI inflation accelerated for the third straight month in June hitting 1.62 per cent on costlier food and manufactured items.
Shares of Tara Jewels soared 10.21 per cent, Shree Ganesh Jewellery House 9.5 per cent and Gitanjali Gems 4.53 per cent on BSE.
Wockhardt's AGM is scheduled to be held on August 13.