The Indian market is likely to open higher on the back of positive global cues. Net FII buying over the past two sessions and rapid advances of the southwest monsoon since Sunday may keep underlying sentiment upbeat, but volatility may persist ahead of the announcement of the Union Budget next Monday. FIIs bought shares worth Rs.292.4 crore on a net basis on Monday, provisional data from the BSE showed. According to SEBI, foreign funds bought shares worth Rs.672.90 crore on Friday.

Overnight, the major U.S. averages kicked off the week on a strong note amid some bargain hunting despite any prominent triggers. However, volumes were rather thin as some traders chose to stay on the sidelines ahead of the release of key economic data later in the week, which include data on home prices, consumer confidence, manufacturing and employment. The Dow Jones Industrial Average ended up 1.08%, the Nasdaq Composite rose a modest 0.32% and the S&P 500 index added 0.91%.

However, the Indian ADRs closed mixed. MTNL jumped 7.62%, Sterlite rallied 3.7%, Reddy's Laboratories rose 2.32% and Satyam gained 1.24%, but Infosys edged down 1.12%, ICICI Bank slipped 0.29%, Wipro declined 0.34% and HDFC Bank ended down 0.53%.