quarterly profit and allayed fears that the crisis in the euro zone would hit the industry's growth.
The main stock index climbed to its highest close in almost six weeks on Tuesday as investors eyed a potential easing of monetary policy by the central bank on the back of encouraging inflation data and digested better than expected Chinese GDP growth data.
There is more pipeline negative news from the euro zone but domestic cues are now supportive of equity assets, Moses Harding, head of market research at IndusInd Bank, wrote in a note on Wednesday.
Airline shares are seen opening higher after the country's aviation ministry said late on Tuesday it would recommend the government allow foreign airlines to buy stakes of up to 49 percent in struggling carriers.
Jet Airways, Kingfisher Airlines and SpiceJet all gained strongly on Tuesday in anticipation of a decision on the issue.
Essar Oil is expected to open down after India's Supreme Court passed a ruling that its largest shareholder said means the refiner will no longer be able to defer payment of a sales tax, having hitherto benefited from deferrals of $1.24 billion.
Shares in London-listed Essar Energy, which owns 87 percent of Essar Oil, fell as much as 38 percent following the ruling late on Tuesday, before closing 26 percent lower.
Asian shares were mixed on Wednesday after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in a debt sale and Greece resumes talks on its debt restructuring.
At 0250 GMT, the MSCI's broadest index of Asia Pacific shares outside Japan was down 0.1 percent, while Tokyo's Nikkei average was up 0.2 percent.
The Nifty India stock futures in Singapore was slightly lower.
STOCKS TO WATCH
* State Bank of India is likely to rise after its chairman told Reuters the lender is not looking at raising more funds, a day after the state-run bank received approval for capital infusion of up to $1.6 billion.
* Usha Martin may rise after the steel wire ropes maker said it expects to commence partial operations at its Thailand unit from April.