MUMBAI (Reuters) - The BSE Sensex should extend gains to the third session in a row on Tuesday, as investors pick up battered heavyweight stocks ahead of the quarterly earnings season.
Hopes of European leaders taking action to protect the continent's banks will also underpin the market, traders said.
Shares in leading carmaker Maruti Suzuki will be in focus on continued labour unrest at one of its plants in northern India that has badly hit production of cars and is expected to hurt profitability.
Striking employees of Maruti have seized control of a factory hit by weeks of labour unrest, the company said on Monday, as a stand-off that has cost the firm over $150 million descended into violence.
Infosys will be watched a day before its quarterly earnings. India's No. 2 software services exporter is forecast to report a 9 percent rise in its September quarter net profit on Wednesday.
Asia stocks on Tuesday joined a global market rally after a pledge from German and French leaders to come up with a plan by the end of the month to tackle Greece's confidence-sapping debt woes and recapitalise European banks.
The regional shares were also bolstered by China's move to support its stock market by buying shares of major banks in a sign of government support for the country's languishing stock market.
The MSCI's broadest index of Asia Pacific shares outside Japan was up 2.1 percent by 0236 GMT, while Japan 's Nikkei rose nearly 2 percent and South Korea 's Kospi was trading 2.2 percent higher.
The Nifty India stock futures traded in Singapore were up 0.8 percent, pointing to a higher open for the Indian markets.
On Monday, India's benchmark BSE index rose 2 percent to 16,557.23 points.
STOCKS TO WATCH
* Lenders such as State Bank of India and ICICI Bank ahead of industrial output data on Wednesday and September inflation on Friday. The data should provide cues on the central bank's policy stance at its meeting on Oct. 25.
* Strides Arcolab, after the drugmaker said it received U.S. approval for cladribine injection.
(Reporting by Sumeet Chatterjee and Rajesh Kurup; Editing by
Ranjit Gangadharan)
