Software services company Mahindra Satyam Ltd rose more than 5 per cent after it reported a stronger-than-expected five-fold jump in quarterly net profit, helped by a fall in the value of the rupee.

At 9:18 a.m. (0348 GMT),the main 30-share BSE index was up 0.9 per cent at 17,458.71, with 29 of its components rising.

The 50-share NSE index was up 0.8 per cent to 5,277.70.

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PREOPEN

Sensex seen higher, telecoms under pressure

Sensex is expected to climb on Thursday after strong manufacturing data from China to Germany bolstered risk appetite across Asian markets.

Telecom companies, however, could be subdued ahead of a verdict by India's top court on a petition seeking cancellation of several licences given out to companies in a 2008 grant process, which later snowballed into a massive scandal. The judgment is due on Thursday.

The main stock index, which rallied 11.3 percent in January, should maintain the positive momentum though profit-taking is around the corner, said S.P. Tulsian, an independent market analyst.

Asian shares and the euro gained as global manufacturing data soothed fears about global economies deteriorating on the back of the ongoing euro zone debt crisis.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.2 percent by 0248 GMT, while Japan's Nikkei average was trading 0.8 percent higher.

The Nifty India stock futures in Singapore were up 0.5 percent, indicating a firm start in the local market.

On Wednesday, India's benchmark share index rose 0.62 percent to 17,300.58, its highest close in 12 weeks.

STOCKS TO WATCH

* State-run banks such as State Bank of India, Bank of India, Union of Bank of India and Punjab National Bank may fall after the deputy governor of the Reserve Bank of India said it was not considering any special dispensation to provisioning norms for banks' bad loans.

* Welspun Corp is expected to open lower after the steel pipes maker reported a net loss in the December quarter.

* Finolex Cables Ltd is likely to drop after the electrical cables maker said its December quarter net profit fell nearly 48 percent.