The BSE Sensex rises 0.17 percent to 19,338.68, while the NSE index up 0.18 percent at 5,881.45.
Reliance Industries extends gains to more than 2 percent after a report in The Economic Times newspaper said the oil ministry is poised to approve the company's investment plans for the controversial KG-D6 block, setting the stage for reversing the sharp decline in output by developing new fields, citing government sources.
Banks' shares gain on hopes of more open market operations from the Reserve Bank India and some monetary easing by December end, dealers say. ICICI Bank up 1.5 percent.
RBI earlier in the day conducted an auction to buy up to 120 billion rupees of debt, including the benchmark 8.15 percent 2022 bond and the 8.19 percent 2020 bond.
Retail shares such as Pantaloon Retail India trade flat ahead of a crucial vote in parliament on foreign direct investment in multi-brand retail.