Overseas investors bought shares worth 2.89 billion rupees ($47.8 million) on Tuesday, provisional exchange data shows, totalling 51.20 billion rupees for 2014 so far.
Shares of Bharti Airtel, India's top mobile phone carrier, up 1.3 percent after the company reported a surge in quarterly profit, in line with expectations.
Markets: Early trade
The benchmark BSE Sensex recovered 76 points in early trade today on emergence of buying by funds and retail investors on the back of encouraging corporate earnings.
Besides, a firming trend in the global markets also buoyed the trading sentiments here.
The 30-share index, which had lost over 410 points in the previous three sessions, rose by 76.45 points, or 0.34 per cent, to 22,542.64, with stocks of oil & gas, auto, consumer durables, power and FMCG sectors leading the rise.
On similar lines, the National Stock Exchange index Nifty rose 19.75 points, or 0.29 per cent, to 6,735.00.
Sentiments turned better after the country's largest mobile operator Bharti Airtel reported 89 per cent rise in Q4 consolidated net profit at Rs 962 crore, brokers said.
Stocks of Bharti Airtel climbed 1.54 per cent to Rs 340.30 in early trade.
A firming trend in the Asian region, largely in line with overnight gains in the US markets, also buoyed the sentiments, they said.
Among other Asian markets, Hong Kong's Hang Seng was up 12.15 points, while Japan's Nikkei gained 108.72 points in morning trade today.
The US Dow Jones Industrial Average ended 0.53 per cent higher in yesterday's trade.