At 9:01 a.m. (0331 GMT), the 30-share BSE index was up 0.32 percent at 18,297.40 points, with 22 components advancing.

Mahindra Satyam rose 2.2 percent to 84.45 rupees, after the outsourcer said late on Thursday it had won a multi-million dollar technology services deal from a large health insurer.

The 50-share NSE index was up 0.2 percent at 5,495.95.

STOCKS/PREOPEN: Sensex seen higher; Mahindra Satyam eyed

Indian shares could start higher on Friday, tracking firm Asian markets but there will be resistance as investors are concerned about expensive valuation.

Mahindra Satyam will be in focus after the outsourcer said late on Thursday it had won a multi-million dollar technology services deal from a large health insurer.

Steel companies will be watched after some of them raised prices on firm global markets and rising input costs.

JSW Steel and Ispat Industries have raised prices this month, company officials said on Thursday, while state-run Steel Authority of India cut its discount by 1,000 rupees a tonne on flat products.

The MSCI's measure of Asian markets other than Japan was up 0.2 percent by 0304 GMT, while Japan's Nikkei was trading 0.4 percent higher.

The Nifty India stock futures in Singapore were up 0.3 percent.

On Thursday, the 30-share BSE index ended up 0.2 percent at 18,238.31.

STOCKS TO WATCH

* GVK Power and Infrastructure, after a top official told Reuters it plans to raise funds for its airports business by December via stake sale to private equity firms.

* Apollo Hospitals Enterprise Ltd, after a top official said it plans to invest 18 billion rupees to set up 11 hospitals in the country over the next two years.

* Textiles firm Nakoda Ltd, after the company said it plans to invest 329.2 million rupees to set up a wind power project in Madhya Pradesh.

* Asian Hotels (West) Ltd, after the company said it acquired a 16.38 percent stake in Inovoa Hotels and Resorts Ltd, and plans to acquire an additional 34.11 percent in the current fiscal.

FACTORS TO WATCH

* Risk currencies firm after strong U.S. data

* Crude slips ahead of U.S. jobs data, Hurricane Earl

* Asia stocks edge up ahead of key US jobs data