BSE Sensex gains 0.32 percent, while the Nifty is up 0.31 percent, heading for a third consecutive session of gains after hitting 2013 lows on Friday.
However, traders warn this week's gains are likely driven by purchases of recently under-performing sectors and may not sustain ahead of the budget.
Shares in Reliance Industries gain 1.8 percent a day after the company said it will invest over $5 billion in the next three to five years with UK partner BP to boost declining output at a key natural gas field off India's east coast.
DLF shares gain 1.5 percent, extending a recent rally on continued hopes of an earnings recovery. The property developer has gained 8.6 percent in the previous two sessions.
Welspun Corp however, fell 2.24 percent after National Stock Exchange excluded the company's shares from trading in the futures and options segment from April 26, without giving a reason.
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