Reuters Market Eye - The Sensex gains 0.24 percent, while the 50-share Nifty advances 0.22 percent on data showing China's manufacturing output in July grew at its fastest pace in nine months, traders say.
The news is a welcome development after Spain's debt woes had dominated headlines, traders say. Domestic indexes had fallen in each of the previous two sessions.
Hindustan Unilever shares gains 3.6 percent a day after April-June Net profit doubled, handily beating estimates.
However, India's no. 3 software services company Wipro shares drop 3.6 percent after issuing a muted sales forecast for the quarter.
Provisional exchange data showed foreign investors were buyers of stocks worth 1.09 billion rupees on Monday.