The markets also gained as Indian investors picked up bank, auto and financial service stocks over expectation of further measures by the government to revive private investment.
BSE Sensex closed 163.68 points, or 0.44 per cent, higher at 37,145.45. It opened on a weak note at 36,969.48, against its Friday close of 36,981.77.
The broader Nifty closed higher on Monday by 56.85 points at 11,003.05.
In a bid to push investment and growth, the Chinese central bank on Friday cut lenders” reserve requirement ratios.