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Buying in information technology and fast-moving consumer goods stocks pushed the markets higher, however the upside was limited due to selling in energy and state-run banking stocks such as Punjab National Bank (PNB).
At 10:02 am, the S&P BSE Sensex traded 120.05 points, or 0.31 per cent, higher at 38,820.58 and the NSE Nifty was at 11,627.70, up 23.20 points from the previous close.
Market breadth, however, favoured declines, with 949 stocks trading lower on the National Stock Exchange (NSE), as against 639 moving higher.
Caution prevailed as investors awaited key macroeconomic data and the start of the earnings season due later this week, say analysts.
The government is slated to release macroeconomic data such as consumer inflation and industrial production on Friday.
Friday will also mark the release of earnings by IT majors Tata Consultancy Services (TCS) and Infosys.
Investors in other Asian markets braced for key events later in the week, including the start of the US earnings season and a crucial Brexit summit, while broader concerns about slowing global growth checked sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan was basically flat after brushing its highest since late August last year during the previous session. Japan's Nikkei dipped 0.15 per cent.
(With inputs from Reuters)