The Nifty50 closed at 10,016.95 points - up 28.20 points or 0.28 per cent, while the Sensex closed higher by 77.52 points, or 0.24 per cent, at 31,924.41 points.
Bharti Airtel, Infratel, TCS, HPCL and International Olympic Committee are among the gainers, whereas YES Bank, India Bulls Housing Finance, SBI, Zee Entertainment, and Bajaj Finance are losing steam on NSE.
The gauge had gained 332.38 points in the previous three sessions. Markets would also be guided by release of domestic news and activities such as release of inflation data, an IPO from GIC, and an economic and advisory council meeting to be held on Wednesday. Australian stocks jumped to one-and-a-half month highs while South Korea's KOSPI added 0.6 per cent to within a whisker of record peaks. Wall Street scaled all-time highs overnight. Reliance Industries too rose 1.54 per cent to Rs 856.35 ahead of its second quarter earnings later this week.
At the close, the benchmark 30-share index, BSE Sensex lost 90.42 or 0.28% at 31,833.99 with 23 components registering drop.
At 10:33, 33 stocks in the 50-scrip Nifty were trading in the positive zone.
In terms of the broader markets, the S&P BSE mid-cap index fell by 0.82 per cent, while the small-cap index closed lower by 1.08 per cent.