The Bombay Stock Exchange benchmark Sensex rose by 84 points to a six-week high in early trade on buying by foreign funds tracking firm trends in other Asian equity markets.
The 30-share index gained 84.13 points, or 0.54 per cent at 15,463.09 points in early trade. It had surged by 3.61 per cent in the past two sessions.
The wide-based National Stock Exchange index Nifty moved up by 25.05 points, or 0.54 per cent, to 4,593.60 points.
Marketmen attributed rise in stocks to pick up in buying by foreign funds, triggered by firming Asian markets which were trading almost 2 per cent up in the morning trade.
However, the rising trend was checked to some extent by heavyweight Reliance Industries, which fell by 4.90 per cent to Rs 1,915 on lower-than-expected first quarter earnings.
Major gainers were Infosys Technlologies (up by 0.96 per cent) at Rs 2,022.65, ONGC by 1.13 per cent at Rs 1138.90, Sterlite Industries by 1.13 per cent at Rs 660.30, Tata Steel by 1.36 per cent at Rs 445.90, Tata Power by 1.88 per cent at Rs 1,194.85, DLF Ltd by 1.71 per cent at Rs 400.40 and BHEL by 1.23 per cent at Rs 2,230.25.
The Hong Kong's Hang Seng was up nearly 2 per cent, while Japan's Nikkei gained 1.76 per cent in morning trade on Monday.