Markets opened higher in tracking firm Asian cues with the Nifty re-claiming the 6,500 level.
In an otherwise, data light week, markets may witness bouts of volatility with focus on F&O expiry on Thursday.
The 30-share BSE Sensex opened 109 points higher at 21,860 levels while the 50-stock NSE Nifty opened 28 points higher at 6,523.
In Asia, Asian shares gave up earlier gains on Monday after the China HSBC flash manufacturing purchasing managers index (PMI) fell to an eight-month low in March.
Asian stocks surged on Monday, with the regional indices paring last week’s losses, as Japanese markets surged after an extended weekend and as investors were unfazed by a drop in Chinese manufacturing.
The preliminary reading of 48.1 fell from February's final reading of 48.5, while the "flash" March index also showed new orders slid for a fourth consecutive month to 46.9 -- its lowest point since July 2013, while output fell to 47.3, the lowest since September 2012.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% after the China data's release after gaining as much as 0.5%.
Japan's Nikkei share average bucked the trend and gained 1.3%.