Reuters Market Eye - The benchmark BSE Sensex is up 0.75 percent, while the broader Nifty rises 0.73 percent, heading for their third consecutive session of gains. IT shares gained after the rupee weakened.
Tata Consultancy Services Ltd gains 1.31 percent while Infosys Ltd is up 1.88 percent.
Mahindra and Mahindra Ltd gains 3.44 percent ahead of its July-quarter results later in the day.
However, capital goods makers fall after data late on Monday showed factory output contracted more than expected in June from a year earlier, with a 6.6 percent decline in capital goods production.
Larsen & Toubro Ltd trading up nearly 1 percent.
(Reporting by Abhishek Vishnoi)