Reuters Market Eye - The Sensex gains 0.29 percent, recovering after slumping 3.1 percent over Friday and Monday. The Nifty is up 0.28 percent.
More stable Asian shares also help improve sentiment.
Traders focused on the RBI policy review at 11 a.m. India time, with most analysts expecting no change in the repo rate but bracing nonetheless for a potential surprise hike.
Rate-sensitive stocks lead the gains ahead of the RBI review. Bank of Baroda gains 2.3 percent while Punjab National Bank is up 1.83 percent.
Real estate developer, DLF is up 1.8 percent while financing company IDFC gains 1.6 percent.
(Reporting by Abhishek Vishnoi)
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