Amid volatility, the Bombay Stock Exchange benchmark Sensex gained more than 120 points during early trade today.

The Sensex surged on account of increased buying by funds plus retail investors on expectations of an increase in monetary reforms by the new administration, even though other Asian stock markets were trading negative.

The 30-share index, which closed the week after gaining 150.61 points in highly volatile trading session on Friday, surged 121.60 points (up 0.88%) to 14,008.75 points, as there was good buying action seen across metals, realty, capital goods and banking sector stocks.

Meanwhile, the broad-based Nifty gained 31.10 points to 4,269.60 after slipping temporarily to 4,230.50 points initially.

Stock brokers stated that hopes of acceleration in financial reforms and additional expenditure on the infrastructure segment by the new government, primarily buoyed on trading reaction.

The allocation of Finance department to Pranab Mukherjee also increased buying action on the stock markets, they added.

Major gainers on the Sensex, included DLF Ltd, which gained 2.80%, Bharti Airtel surged 2.33%, Tata Steel increased 2.24%, Sterlite Industries zoomed 2.17%, Larsen and Toubro climbed 1.42%, SBI was up by 0.13%.

Meanwhile, the Hong Kong's Hang Seng lost 1%, and Japan's Nikkei 1.5% during early trade.