The BSE benchmark Sensex on Monday gained over 80 points in early trade on continued buying by funds as well as retail investors.
The 30-share index, which had gained 345.59 points in the previous session, rose further by 80.05 points, or 0.46% to 17,484.25.
The wide-based National Stock Exchange Nifty index also moved up by 16.20 points, or 0.26%, to 5,311.75.
Brokers said selective buying by funds in blue-chip stocks mainly supported the rise.
Stocks of consumer durables, realty, auto, banking, capital goods, IT and power sector were trading in positive zone.
In the Asian region, Japan's Nikkei gained 0.68%, while Hong Kong's Hang Seng shed 0.52% in the morning trade on Monday. The US Dow Jones Industrial Average ended 0.50% higher in the previous session on Friday.