State-run Coal India , the world's biggest coal miner, rallied 3.9 percent after DNA newspaper reported the company may report a 12 percent rise in profit after tax for the fiscal year ending March 31.

Reliance, which has the heaviest weight in the main index, rose 1.3 percent after falling 5.4 percent over the past three days.

At 11:09 a.m. (0539 GMT), the 30-share BSE index was up 0.99 percent at 18,016.47 points, with 28 components advancing.

"Global markets are helping, but participation is not high. There is no confident buying that we can see," said Ambareesh Baliga, chief operating officer at Way2Wealth Securities.

"Not much upside is likely as Libya issue is still burning. We need to watch how much does oil rise further."

India imports more than two-thirds of the oil it consumes and high prices can fan broader inflation. The central bank raised key interest rates last week for the eighth time in 12 months, and warned of inflation pressures and emerging risks to growth.

Brent crude futures were supported near $115 on Tuesday by supply concerns triggered by the spreading unrest in the Middle East.

Anti-aircraft fire rang out across Tripoli for a third night on Monday, but air attacks on Libya are likely to slow, a US general said, as Washington holds back from being sucked into the Libyan civil war.

Foreign funds have sold around $1.9 billion of Indian stocks since the start of the year, and the benchmark is down 12 percent in 2011.

Outsourcers recovered with the sector index gaining 0.4 percent, after dropping 3.5 percent over three sessions.

Infosys and Wipro gained 0.6 percent and 0.8 percent respectively, while the bigger rival Tata Consultancy Services was barely changed.

Rising oil prices continued to pull down state-run oil marketing companies, which sell fuel at government-set low prices. Indian Oil Corp , Bharat Petroleum Corp and Hindustan Petroleum Corp were down between 0.3 percent and 0.9 percent.

Oil explorer Cairn India climbed 0.7 percent.

Advancing shares were nearly twice the number of declining ones, while around 82 million shares changed hands on the BSE.

The 50-share NSE index was up 1 percent at 5,418.60.

The MSCI's measure of Asian markets other than Japan  was up 0.4 percent, while Japan's Nikkei rose 4.2 percent.

STOCKS ON THE MOVE

* Sugar producers rallied after industry sources told Reuters the government was likely to allow 200,000 tonnes of sugar exports on Tuesday under unrestricted sales, less than half a million tonnes permitted earlier.

Shree Renuka Sugars , Bajaj Hindusthan , Simbhaoli Sugars and Balrampur Chini Mills were up between 3 percent and 3.4 percent.