The BSE Sensex up 0.27 percent and the NSE index higher 0.16 percent.
Indian carriers Jet Airways and SpiceJet are in talks with Abu Dhabi's Etihad Airways and Malaysia's AirAsia Bhd, respectively, to sell minority stakes, a government source said on Monday.
Jet Airways rises 14.5 percent, while SpiceJet gains 16.7 percent.
Export-driven technology shares rise following weakness in the rupee. Infosys rises 1.4 percent.
Shares in Mahindra & Mahindra fall 2.1 percent after reports that the automaker has entered into a takeover deal with an Italian private equity fund for 50 percent of British luxury car maker Aston Martin.
Caution to prevail until the outcome of an all-party meeting convened by the government to end logjam over some key reform measures, and as investors focus on a meeting of euro zone finance ministers on Greece.