The BSE Sensex should extend its rise to a fourth day on Wednesday as reports of an aid plan for debt-laden Greece calmed investors and triggered a rally in global markets.
Leading mobile firms Bharti Airtel and Reliance Communications will be in focus on their plans to launch online mobile applications stores, opening up a new revenue stream from add-on services.
Non-ferrous metals producer Sterlite Industries will be watched after copper prices rose 2.2 percent in London.
"We may open strong, looking at the rise in world markets. But the spike may be used by some to exit," said Arun Kejriwal, director of research firm KRIS.
The market is unlikely to sustain a recovery until foreign portfolio inflows picked up, traders said.
Asian shares were firm with the MSCI's measure of Asian markets other than Japan was up 0.6 percent by 0258 GMT, while Japan's Nikkei climbed 1 percent.
The Nifty India stock futures in Singapore were up 0.6 percent, indicating the domestic market may open up.
On Tuesday, the 30-share BSE index closed up 0.7 percent at 16,042.18.
STOCKS TO WATCH
* ITC Ltd after the Mint newspaper reported the company has hiked price of its flagship cigarette brand Gold Flake Kings by 7-8 percent.
* Reliance Industries Ltd after the energy major that operates the world's biggest oil refining complex said it had halted fuel sales to Iran from May 2009.
(Reporting by Ami Shah and Tamajit Pain; Editing by Ranjit Gangadharan)
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