Reuters Market Eye - The Sensex gains 0.67 percent, and the NSE stock index is up 0.79 percent, tracking a recovery in the rupee from a record low of 61.21 in the previous session.
Rupee gains as India's regulators toughened rules for derivatives trading in the currency market in a bid to arrest the steep decline of the rupee.
Asian shares gain on Tuesday, tracking a rally in Wall Street shares, but investors were nervous over Beijing's new drive to reform credit to restructure the economy.
Recent underperformers gain: HDFC Bank gains 1.6 percent while Reliance Industries Ltd is up 1.4 percent.
Titan Industries Ltd gains 1 percent after Goldman Sachs upgrades the stock to "buy" from "neutral", saying the jewellery retailer is "sufficiently" capitalised to buy gold without too much leverage, while its growth is being supported by additional stores and "resilient" wedding and discretionary demand.
(Reporting by Abhishek Vishnoi)