Reuters Market Eye - The BSE Sensex gains 0.3 percent. Asian shares extended gains for a third straight session to reach a three-month high on Wednesday, as investors continue to bet that policymakers will soon decisively address the euro zone fiscal crisis and declining global growth.
Provisional exchange data showed foreign investors were buyers of stocks worth 8.16 billion rupees on Tuesday, when the BSE index rose by 1.1 percent.
Dealers however say that considering sharp run-up over the last two sessions, some correction could set in at higher levels later during the day.
Metal shares were leading the gains: Hindalco rose 2.6 percent, Jindal Steel and Power rose 2.34 percent while Tata Iron and Steel gained 1.9 percent
Bharti Airtel shares fell 3.66 percent after the company posted a 37 percent fall in April-June net profit.