The BSE Sensex gained 0.31 per cent, while the NSE Nifty is up 0.34 per cent. Asian shares also steady, with caution prevailing ahead of U.S. monthly jobs data on Friday which will help set expectations about the timing of any potential tapering of the Federal Reserve's stimulus program.
Power Grid Corporation of India Ltd shares rise 1.5 percent after stronger-than-expected demand for its $1.1 billion share sale.
Earlier, the benchmark BSE Sensex fell by over 26 points in early trade due to profit-booking by funds and speculators after yesterday's rally amid a weak Asian trend.
The 30-share barometer declined by 26.11 points, or 0.12 per cent, to 20,931.70, with stocks of banking, IT, auto and metals sectors leading the fall.
The index had gained 249.10 points in the previous session.
Similarly, the wide-based National Stock Exchange index Nifty moved down by 8 points, or 0.13 per cent, to 6,233.10.
Brokers said profit-booking by participants after yesterday's rally and a weak trend in the Asian region, as better-than-forecast US growth data adding to expectations the Federal Reserve will start to wind down its stimulus programme, mainly dampened the trading sentiment here.
In Asia, Hong Kong's Hang Seng index was down by 0.39 per cent, while Japan's Nikkei shed 0.43 per cent in early trade.
The US Dow Jones Industrial Average ended 0.43 per cent lower yesterday.