The major indices started the week on a strong note, mirroring positive indications from global peers, while rising oil prices, which are at a three-year high, could roil attitudes.
With the Nifty nearing 18,000, benchmark indices have crossed prior record high levels and are trading at new record highs.
The Sensex was up 344.66 points, or 0.57 percent at 60393.13, while the Nifty was up 83.60 points, or 0.47 percent, at 17936.80 in the morning session.
On the back of favorable domestic and global factors, the market gained 1.5 percent in the week ending September 24, with the Sensex reaching a new high of 60,000.
On Monday, Asian stocks started off cautiously, fearful that a surge in oil prices to three-year highs would exacerbate inflation fears and exacerbate the recent hawkish tilt by some major central banks.
After three weeks of losses, MSCI's broadest index of Asia-Pacific stocks outside Japan was flat. The Nikkei 225 index in Japan rose 0.4% on expectations of more fiscal stimulus once a new prime minister is appointed.
On the global front, the Dow and S&P 500 indexes crept up on Friday, ending a tumultuous week with little gains, aided by advances in Tesla and Facebook, which outweighed a drop in Nike.
Brent increased 62 cents to $78.71 a barrel on Monday, while US crude gained 71 cents to $74.69. Such a rise might fuel speculation that global inflation would endure longer than expected.
With the House of Representatives set to vote on a $1 trillion infrastructure measure this week, all eyes will be on US fiscal policy. Meanwhile, a September 30 deadline for funding federal agencies might result in the second partial government shutdown in three years.
PVR and INOX Leisure, multiplex chain operators, are in the spotlight today after the Maharashtra government decided to reopen theatres and auditoriums with effect from October 22, subject to safety precautions, particularly after reviewing Covid cases and vaccination data.