The benchmark BSE Sensex is up 0.7 percent, while the broader Nifty is up 0.6 percent, heading towards their third consecutive day of gains.
Larsen & Toubro Ltd gains 2 percent after Barclays upgrades the stock to "overweight", citing a potential recovery in earnings and valuations.
Sesa Goa Ltd gains 8.7 percent ahead of its inclusion in the BSE Sensex on Tuesday.
Hexaware Technologies Ltd gains 6.63 percent after Baring Private Equity Asia agreed to buy a controlling stake in the Indian outsourcing service provider for about $420 million.
Traders however remain wary about foreign flows after overseas investors sold about $720 million of shares in the previous six sessions through Friday, ahead of June quarter GDP data and the expiry of August derivatives contracts this week.