The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) gained 79.48 points, or 0.41 percent, to 19,257.41 with stocks of healthcare, IT, oil and gas and capital goods leading the rise.
The Sensex had gained 350.77 points in the previous session as slowing wholesale inflation and strengthening rupee revived hopes of rate cut by RBI.
The wide-based National Stock Exchange index Nifty up by 12.00 points, or 0.21 percent, to 5,820.40.
In the Asian region, Hong Kong's Hang Seng index gained 0.18 percent, Japan's Nikkei up by 1.20 points in early trade on Monday.
The US Dow Jones Industrial Average ended 0.70 percent lower in the previous session on Friday.