The BSE Sensex is up 0.15 percent and the 50-share Nifty is up 0.09 percent. The focus is on the budget with market participants waiting to see if it will provide fiscal reform measures or whether the government will increase spending ahead of the general elections in 2014.
State-run oil retailers gain after increasing prices of petrol by 1.50 rupees per litre excluding local taxes, and diesel by 0.50 rupees per litre from Saturday.
Indian Oil Corp (IOC.NS) up 1.8 percent, Bharat Petroleum Corp (BPCL.NS) gains 1.6 percent and Hindustan Petroleum Corp (BPCL.NS) is up 1.9 percent.
Jet Airways India Ltd (JET.NS) shares fall 5.4 percent after Etihad Airways chairman said the Abu Dhabi-based carrier needs to revise its deal to buy a stake in the Indian carrier.
The Reserve Bank of India chief struck a hawkish note on Saturday saying there are upside risks to inflation from food and commodity prices, while room for monetary easing is limited will put some dampener on hopes of a March rate cut.