Tata Motors, TCS, Coal India, Hindalco and HCL Tech - trading between 1.48 per cent and 4.19 per cent higher - were the top gainers on the 50-scrip index at the time. TCS, ITC and Tata Motors were the top contributors to the advances on Sensex.
On Friday, official data showed consumer inflation picked up to 2.86 per cent in March, from 2.57 per cent the previous month, strengthening hopes of further easing of monetary policy by the central bank this year.
The government is due to release wholesale inflation (gauged by Wholesale Price Index) later in the day.
Shares in information technology majors Tata Consultancy Services (TCS) and Infosys were in focus, after the companies announced their quarterly earnings post-market hours last Friday. TCS rose as much as 3.65 per cent in early trade while Infosys declined 4.70 per cent.
The domestic markets took positive cues from Asian peers, where equities neared nine-month highs on easing of concerns about the US-China trade conflict.
US Treasury Secretary Steven Mnuchin said he hoped the trade talks between the two countries were approaching a final lap, while strong Chinese export and bank loan data boosted confidence in the global economy.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 per cent to its highest since late July. Chinese shares led the growth with the blue-chip CSI300 index rising 2.2 per cent. Hong Kong's Hang Seng added 1.2 per cent while South Korea's KOSPI rose 0.7 per cent. Japan's Nikkei gained 1.4 per cent to the highest since early December.