Reuters Market Eye - The BSE Sensex gains around 0.6 percent and the broader Nifty rises 0.63 percent after falling for two consecutive sessions to their lowest close in about a month.
Gains track higher Asian shares after U.S. stocks gained overnight as weaker-than-expected factory activity supported views the Federal Reserve will keep economic stimulus in place.
Cipla Ltd gains 2.6 percent on value-buying after falling 8.5 percent in the previous three sessions.
Mahindra and Mahindra Ltd's shares gain 0.8 percent, heading for a second day of gains after unit Ssangyong Motor Co Ltd's sales rose 25 percent in May, dealers say.
However, shares in Shriram Transport Finance Co Ltd fall 0.5 percent after the Reserve Bank of India's clarifications on guidelines for bank licence applications were seen hurting its odds of potential approval.
(Reporting by Abhishek Vishnoi)