Reuters Market Eye - The BSE Sensex is up 0.11 percent while the Nifty gains 0.03 percent.
Interest-rate sensitive stocks gain ahead of Reserve Bank of India's policy review on Tuesday.
ICICI Bank (ICBK.NS) is up 1.08 percent, while Maruti Suzuki (MRTI.NS) gains 2.1 percent.
Although the RBI is not expected to ease policy then, traders said the central bank could cut the cash reserve ratio or sound more dovish on inflation.
Hopes parliament will approve the Banking Amendment bill this week also seen helping shares: Union Bank of India (UNBK.NS) rises 1.81 percent, while Bank of India (BOI.NS) is up 1.13 percent.
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With the Nifty breaching 8,500, sentiments are again bullish. But markets have been in the 8,200-8,600 range for some time and stocks across the board do not give the required confidence except for the liquidity factor. Many frontline stocks are not participating on the upside and the core sector is in a downtrend, writes Ambareesh Baliga. Column