The Sensex was trading at a lifetime high of 22,460 points, up 120 points over Friday's close, while the Nifty was up 30 points at another lifetime high of 6729 points.
Among the early gainers in trade were the banking names including the likes of ICICI Bank, HDFC Bank and Kotak Mahindra Bank.
PSU banking stocks continued to have a spectacular rally with the likes of IDBI Bank, Bank of Baroda, Punjab National Bank and Canara Bank seeing higher levels in trade.
Bharti Airtel was up more than 1 per cent after the company said one of its promoter group entity Bharti Telecom has bought 57.14 lakh shares of the company for Rs 171.92 crore through various market transactions.
Bosch Ltd dropped marginally in trade after reports that there was a strike at one of the company's plants.
Nifty stocks that lost ground in trade were the software stocks with Infosys, Wipro and TCS among the early losers.
Sesa Sterlite was slightly weak in trade on reports that one of its executive director's have quit the company.
Shares in ABG Shipyard were trading higher after reports that the company's debt recast was cleared. Meanwhile, markets across Asia were trading with gains led by a rally in the Jakarta Composite and the Japanese Nikkei.