Housebuilder Persimmon was in the top spot after UK Chancellor George Osborne announced that he is extending the 'Help to Buy' mortgage guarantee scheme by a further four years.
Investors were also responding to Rightmove data which showed that asking prices for homes in the UK rose by 1.6% month-on-month in March to hit a new record high of £255,962.
Mining stocks were performing well with Glencore Xstrata among the highest risers on the back of speculation that it is close to announcing a multi-billion dollar
transaction to sell its Las Bambas mine. Sector peer Anglo American was also firmly in positive territory.
DIY retailer Kingfisher was given a lift by a target price upgrade from Credit Suisse.
Vodafone rose after agreeing to buy Grupo Corporativo Ono, Spain's largest next-generation network, for €7.2bn. The group said the widely anticipated deal would complement its Spanish network and will expand the company's reach in the European market.
High Street retailer Next was on the up ahead of its results later this week, which are expected to report bigger profits that rival Marks & Spencer for the first time ever. The group previously increased its forecast to £684-700m profit.
Bunzl, the distribution and outsourcing group, climbed on the news it has acquired Brazilian healthcare supply and distribution firm Lamedid Comercial e Servicos. Based near São Paulo, Lamedid supplies healthcare consumable products to hospitals, clinics and laboratories as well as to distributors. Revenue in 2013 totalled around £12m.
Meanwhile, supermarket giant Tesco was in the red after Bank of America Merrill Lynch cut its rating on the shares
from 'neutral' to 'underperform'. Over the weekend, the Sunday Telegraph's Questor column also advised investors to sell. Britain's biggest retailer's market share is large at 28.7% but it is falling, the paper said. Tesco shares have fallen 15% since Questor said to sell them in early October. With no change in the basic questions facing Tesco, the advice stands.
Sector peer Sainsbury was also lower ahead of a trading update due out this week. The group is expected to post 3% drop in like-for-like quarterly revenue, having posted a consecutive increase for the past 36 quarters.
Capita fell despite announcing that it has been selected by John Lewis to provide its online contact centre in a deal worth £93.5m over five years.
Diageo, the drinks giant, was driven lower in part by a Motley Fool article which cited the slide in emerging markets and its waning cash pile as two "resounding reasons" not to invest in the stock.
FTSE 100 - Risers
Persimmon (PSN) 1,368.00p +4.19%
Anglo American (AAL) 1,477.00p +3.79%
Glencore Xstrata (GLEN) 307.50p +3.54%
RSA Insurance Group (RSA) 96.25p +3.27%
G4S (GFS) 236.30p +3.01%
Kingfisher (KGF) 412.30p +2.64%
London Stock Exchange Group (LSE) 1,950.00p +2.52%
Mondi (MNDI) 1,096.00p +2.43%
Sage Group (SGE) 412.50p +2.33%
Ashtead Group (AHT) 919.00p +2.11%
FTSE 100 - Fallers
Tesco (TSCO) 299.15p -1.50%
Diageo (DGE) 1,796.50p -1.35%
Sainsbury (J) (SBRY) 310.00p -1.15%
British American Tobacco (BATS) 3,209.00p -0.47%
Morrison (Wm) Supermarkets (MRW) 207.20p -0.38%
Capita (CPI) 1,105.00p -0.36%
Reckitt Benckiser Group (RB.) 4,835.00p -0.25%
Tullow Oil (TLW) 776.50p -0.06%