Software bellwether Infosys (INFY.NS), which kicks off the earnings season on Thursday, rose 0.7 percent.
Technology firms like Infosys and Tata Consultancy Services
(TCS.NS), private-sector banks like HDFC Bank (HDBK.NS) are likely to show better quarterly performance, said Deven Choksey, chief executive at brokerage K R Choksey.
However, many companies are expected to report slower earnings growth, hit by high interest rates, increased costs of raw material and sluggish consumer spending.
There will be a concern for the results of firms like Reliance Industries and companies in telecom sector, industrial commodities and state-run banks, Choksey said.
At 10:25 a.m. (0455 GMT), the benchmark 30-share BSE index was up 1.33 percent at 16,025.65, with all its components gaining.
Deutsche Bank forecast in a note the index could reach 18,000 by the end of 2012, up about 14 percent from Monday's close.
It said banks, real estate and infrastructure would be the key drivers in 2012 and its top picks included Axis Bank (AXBK.NS), ICICI Bank, Coal India (COAL.NS), Larsen and Toubro (LART.NS), Tata Consultancy, Bharti (BRTI.NS) and DLF (DLF.NS).
Energy major Reliance Industries, which had fallen about a third in 2011, gained 1.65 percent. ICICI Bank was up 2.2 percent.
Mahindra Satyam (SATY.NS) gained more than 4.5 percent after the computer services company said it had filed a lawsuit against past directors, some ex-employees and former auditor PricewaterhouseCoopers, seeking damages after the company was hit by a fraud in 2009.
Hindustan Petroleum Corp (HPCL.NS) gained 0.8 percent after sources told Reuters the state-run oil marketing company would double the volume of Saudi crude it imports in an annual deal beginning April.
Trading firm Adani Enterprises (ADEL.NS) gained 2.6 percent and GAIL India (GAIL.NS) rose 0.8 percent after sources told Reuters the two companies along with Gujarat State Petroleum Corp were likely to bid for BG Group's (BG.L) stake in Gujarat Gas (GGAS.NS) for about $900 million.
The 50-share NSE index was up 1.39 percent at 4,808.50. In the broader market, there were 5.2 gainers for every loser on volume of 169 million shares.
STOCKS ON THE MOVE
* Kiri Industries Ltd (KIRI.NS) gained nearly 5 percent after the company said its board had approved raising up to 3 billion rupees.
* Take Solutions Ltd (TAKE.NS) climbed 6.7 percent after the company said it had divested its holdings of 507,909 equity shares in its Muscat-based unit Towell Take Investment LLC.
* GeeCee Ventures Ltd (GECE.NS) rose 3.7 percent after the company said its board had approved buyback of up to 1.6 million shares at a price not exceeding 65 rupees per share.
TOP 3 BY VOLUME
* Lanco Infra (LAIN.NS) with 3.5 million shares
* Suzlon Energy (SUZL.NS) with 3.3 million shares
* Shree Renuka Sugars (SRES.NS) with 3.2 million shares