Reuters Market Eye - The BSE Sensex gains 0.62 percent, while the 50-share Nifty is also up 0.57 percent.
Reliance Industries (RELI.NS) gains 0.6 percent, while Oil and Natural Gas Corp (ONGC.NS) is up 1.7 percent, on hopes of a favourable federal budget.
Gains also track positive Asian shares and other risk assets as sentiment improved after U.S. Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to strong stimulus.
Technology shares gain, Infosys Ltd (INFY.NS) up 0.7 percent on expectations the budget would provide incentives to exporters.
(Reporting by Abhishek Vishnoi)