Reuters Market Eye - The BSE Sensex is up 0.2 percent, while the Nifty is 0.1 percent higher.
Steel stocks gain after positive manufacturing data in a private survey in China, the world's biggest consumer and producer of the metal.
Markets await the Reserve Bank of India's policy review, with most analysts expecting the central bank to keep interest rates on hold but to ease up a bit on its tough inflation rhetoric in a conciliatory gesture to the new Narendra Modi government.
Gains also track Asian shares higher, supported by solid U.S. and Chinese manufacturing data.
Overseas investors bought Indian shares worth 2.34 billion rupees ($39.60 million) on Monday, provisional exchange data show.
Reporting by Abhishek Vishnoi