Key benchmark indices were trading higher in early trade on positive Asian cues. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 274.87 points or 0.72% at 38,299.19. The Nifty 50 index was up 71.75 points or 0.63% at 11,498.60.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 0.48%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 862 shares rose and 325 shares fell. A total of 58 shares were unchanged.

Overseas, Asian shares were trading higher on Monday as investors awaited developments on the US-China trade front.

US stocks closed higher Friday, buoyed by encouraging headlines on US-China trade negotiations and Chinese assurances of forthcoming economic stimulus. According to reports, Chinese Premier Li Keqiang expressed optimism that a trade deal between China and the US can be achieved that suits both parties.

China will stick to its current targeted economic support strategy and resist the temptation to engage in large-scale stimulus like quantitative easing or a massive expansion in public spending, Li Keqiang added.

On the US data front, the New York Fed's Empire State index fell to a reading of 3.7 in March from 8.8 in the prior month. US industrial production rose by 0.1% in February. January's figure, however, was raised to show a 0.4% drop. Job openings in the US rose to 7.58 million in January, the third-highest level on record, according to the Labor Department.

Consumer sentiment rose in March to 97.8 from 93.8 in February, according to a preliminary reading of the University of Michigan consumer sentiment index.

Back home, Lupin was down 5.39%. The company said that its subsidiary Novel Laboratories Inc. has received a letter from the U.S. FDA classifying the inspection conducted at its Somerset (New Jersey) facility in December 2018 as Official Action Indicated (OAI). The U.S. FDA has stated that this facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed. The announcement was made on Saturday, 16 March 2019.

Mindtree was up 1.59%. The company said that its board will meet on 20 March 2019 to consider the proposal to buyback the fully paid-up equity shares of the company. The announcement was made after market hours on Friday, 15 March 2019.

Cadila Healthcare was down 0.32%. The company has received the final approval from the USFDA to market Valsartan and Hydrochlorothiazide Tablets USP (US RLD - Diovan HCT Tablets) in the strengths of 80 mg/12.5 mg, 160 mtg/12.5 mg, 160 mg/25 mg, 320 mtg/12.5 mg, and 320 mg/25 mg. The announcement was made on Saturday, 16 March 2019.

Jubilant FoodWorks was up 1.18%. The company said that Domino's Pizza was officially launched in Bangladesh with the opening of its first restaurant in Rangs Fortune Square, Dhanmondi, Dhaka. The announcement was made after market hours on Friday, 15 March 2019.

Karnataka Bank was up 1.29%. The bank has entered into an agreement with Karvy DigiKormect for total Management of Contact Centre operations. As a part of Transformation journey, the Bank has engaged the services of Karvy DigiKonnect for managing its Contact Centre operations, which will be an effective interface between the Bank and millions of its customers. The announcement was made on Saturday, 16 March 2019.

On the economic front, India's trade deficit plunged 22% to 17-month low of $9.60 billion in February 2019 from $12.30 billion in February 2018. Merchandise exports rose 2.4% to $26.67 billion in February 2019 over a year ago. Merchandise imports dipped 5.4% to $36.26 billion. Oil imports declined 8.1% to $9.38 billion, while the non-oil imports also fell 4.4% to $26.89 billion in February 2019 over February 2018. The share of oil imports in total imports was 25.9% in February 2019, compared with 26.6% in February 2018.