Reuters Market Eye - The BSE Sensex is up 0.42 percent and the broader Nifty higher 0.29 percent, after hitting their highest intraday level in three weeks.
Gains led by a continued rally in software services exporters after Infosys on Friday raised the lower end of its fiscal 2014 revenue outlook.
Infosys gains 1.2 percent, while Tata Consultancy Services rises 1.6 percent.
Reliance Industries gains 0.7 percent, while IndusInd Bank is up 1.4 percent ahead of their July-September earnings later in the day.
Wholesale price inflation data due around noon will be key for further direction after the weaker-than-expected factory output data released on Friday.
(Reporting by Abhishek Vishnoi)