The Sensex is up 298.80 points or 1.2 percemt at 25527.30, and the Nifty is up 84 points or 1 percent at 7817.45. About 1128 shares have advanced, 335 shares declined, and 62 shares are unchanged.
Hindalco, ITC, NTPC, HDFC and Tata Steel are top gainers while Dr Reddy's Labs fell over 1 percent.
The Indian rupee opened marginally higher at 66.52 per dollar on Monday versus 66.55 Friday.
Asian stocks open mixed, as oil prices rallied on supply outages in Canada and amid surprise over the exit of Saudi Arabia's veteran oil minister Ali al-Naimi.
Oil prices surged more than 2 percent at the start of session, as wildfires in Canada shut half of the country's vast oil sands capacity over the weekend, Reuters reported.
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