Reuters Market Eye - The BSE Sensex gains 0.26 percent, while the broader Nifty is 0.39 percent higher. Shares find support from the overhaul of rules for foreign investors, including easing registration procedures and simplifying categories, announced by the market regulator on Tuesday.
The measures are seen as unlikely to spur foreign buying in the short-term, but may help improve sentiment, dealers say.
Foreign investors have sold 105.50 billion rupees over 11 consecutive sessions to Monday.
Most Asian shares turn around a four-day losing streak as investors take comfort from U.S. data underscoring an American recovery and assurances from China's central bank that it will offer funds to banks if needed.
Among blue chips, Reliance Industries gains 1.1 percent while Larsen & Toubro Ltd is up 1 percent.
Reliance Capital Ltd gains 3.7 percent after the Economic Times reported the company has agreed to sell stakes of just under 5 percent in its consumer lending unit to two Japanese firms, citing unidentified sources.
(Reporting by Abhishek Vishnoi)