The BSE benchmark, the Sensex was trading 0.41% or 89.28 points higher at 21,915.70 points, while the NSE's Nifty was trading 0.19% or 12.60 points higher at 6,524.50 points, at 11.15 am IST.
Meanwhile, the Indian rupee was trading at 61.09 per United States dollar against previous day's close of 60.95.
IIP or Index of Industrial Production, which measures the growth of different sectors, would be released on Wednesday.
Experts feel markets are likely to post further gains. "Markets could remain cautious ahead of the CPI data. Overall trend is expected to be positive. Immediate support for Nifty is at 6475, while resistance is at 6580 levels," HDFC Securities said in its morning note.
Among sectoral indices, the BSE Healthcare (1.39%), BSE FMCG (1.49%) and BSE Consumer Durables (1.45%) were the major gainers.
Among individual stocks, Sun Pharmaceutical Industries (3.13%), ITC (2.32%) and Hero Moto Corp (1.82%) were the major gainers on the 30-share Sensex.
Meanwhile, most Asian indices were trading in the red. The Nikkei (-2.49%), Hang Seng (-1.73%), Kospi (-1.47%), Straits Times (-0.58%) and Shanghai Composite (-1.15%) were trading lower.
Indian shares gain to near record highs; IT stocks recover
(Reuters) The benchmark BSE Sensex gains 0.4 per cent while the broader NSE Nifty adds 0.31 per cent, recovering from falls in the previous session to stay within touch of record highs.
Export-oriented sectors such as software services and drug makers gain, recovering from recent falls.
A rally since last week that sent both the BSE and the NSE indexes to record highs, has been driven by domestically-focused sectors such as lenders and capital goods, while exporters stumbled due to a stronger rupee.
Tata Consultancy Services (TCS) gains 1.4 percent, rising for a second consecutive session, but is still down around 4 percent for the month, compared with an around 4 percent gain in the NSE index so far in March.
Sun Pharmaceuticals Industries gains 3.3 percent after slumping 7 percent over the previous four sessions.
BSE Sensex down 20 points in early trade ahead of IIP data
(PTI) The BSE Sensex fell over 20 points in early trade today on sustained selling by funds, ahead of the industrial output data for January,