Reuters Market Eye - The benchmark BSE Sensex is up 0.46 percent, while the broader Nifty is up 0.33 percent, heading towards their third consecutive day of gains.
Larsen & Toubro Ltd gains 1.12 percent after Barclays upgrades the stock to "overweight", citing a potential recovery in earnings and valuations.
Sesa Goa Ltd gains 7 percent ahead of its inclusion in the BSE Sensex on Tuesday.
Hexaware Technologies Ltd gains 6.63 percent after Baring Private Equity Asia agreed to buy a controlling stake in the Indian outsourcing service provider for about $420 million.
Traders however remain wary about foreign flows after overseas investors sold about $720 million of shares in the previous six sessions through Friday, ahead of June quarter GDP data and the expiry of August derivatives contracts this week.
(Reporting by Abhishek Vishnoi)