The Sensex moved in a range of 173.62 points between 39,760.02 and 39,933.64, and the Nifty traded between 11,904.35 and 11,959.95 compared to its previous close of 11,922.70.

At 10:17 am, the Sensex traded 100.67 points - or 0.25 per cent - higher at 39,885.19 while the Nifty was up 24.95 points - or 0.21 per cent - at 11,947.65.

Analysts say macroeconomic data due this week will be watched closely. The government is due to release data on consumer inflation on Wednesday.

According to a poll of over 40 economists by news agency Reuters, consumer inflation likely rose to 3.01 per cent in May from a year earlier, up from 2.92 per cent in April. Forecasts ranged between 2.83-3.50 per cent.

The government will also release data on factory activity - gauged by Index of Industrial Production - on Wednesday, and wholesale inflation on Friday.

Meanwhile, equities in other Asian markets registered modest gains after the US government shelved plans for tariffs against Mexico. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 per cent. Australian stocks rose 0.9 per cent, South Korea's KOSPI added 0.15 per cent and Japan's Nikkei edged up 0.05 per cent.

US President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit.