Reuters Market Eye - The BSE Sensex gains 0.25 percent, while the broader Nifty is up 0.22 percent. However, volumes are low as investors are cautious ahead of the monthly derivatives contract expiry later during the day.
Markets will be closed on Thursday because of a local holiday.
Blue chips extend gains, led by lenders, as overseas investors have been net buyers in the previous nine sessions, with inflows totalling $533.2 million during this period, provisional exchange data showed.
Banking stocks are trading higher with State Bank of India gaining more than 1 percent, traders said.
(Reporting by Indulal PM)