Benchmark indices opened the day higher, on higher closings across the US markets. Asian indices were higher, while Europe saw a sharp bounce in trade on Monday.
The Sensex was trading with gains of 172 points, while the Nifty was higher by 45 points in trade.
Sobha Developers also gained after reports that the board of the company would meet to consider a buyback of shares.
ONGC gained ground, following a good rally in crude oil prices. Tata Coffee fell as much as 2 per cent, after the company reported a dismal set of quarterly numbers.
Midcaps also gained ground with SUN TV and Engineers India amongst the biggest gainers in trade from the space.
IT stocks saw some buying interest with TCS, HCL Tech and Wipro among the gainers.
Meanwhile, most of Asia was tradign with gains with the Japanese Nikkei, The Hong Kong's Hang Sang higher.
The rupee opened marginally higher and was last trading at Rs 66.74 to the US dollar.