The Sensex gained 0.27 per cent, rebounding after hitting its lowest close since December 24, 2012 on Friday. The Nifty also traded with 0.25 per cent gains.
Infosys jumped 2 per cent, while Tata Consultancy Services rose 1.3 per cent on hopes of incentives for exporters in the 2013-14 Budget to be unveiled on February 28.
Shares in non-banking financial companies gained on Monday after the central bank issued guidelines allowing any business sector to apply for banking licences.
Mahindra and Mahindra Financial Services gained 5.6 per cent, while IDFC traded 1.7 per cent higher.
However, Oil and Natural Gas Corp declined 0.8 per cent on expectations of higher oil subsidy burden from the 2013-14 Budget, say dealers.
Copyright Thomson Reuters 2013