Indian shares traded higher on Friday, driven by financials and IT stocks after two sessions of consolidation, as investors lapped up upbeat global cues a day after the Reserve Bank of India (RBI) cut key policy rate by an expected 25 basis points.
RBI cut the repo rate to 6.00 percent on Thursday, as predicted by 57 of 67 analysts polled by Reuters last week, in a move to boost the economy just a week before voting for the national election begins.
Ahead of the general elections starting next week, the major political parties have made promises for heavy spending in order to woo voters, leaving the central bank unsure about how fiscal plans will pan out.
Investors were also hopeful of some headway in the U.S.-China trade talks with President Donald Trump stating that a deal could be announced in about four weeks.
Xinhua reported Chinese President Xi Jinping had said progress was being made and called for an early conclusion of negotiations.
However, analysts expect markets to soon shift focus to the March-quarter corporate earnings begiining next week and the first stage of voting.
"There will be some volatility in the markets now," said Vinod Nair, head of research, Geojit Financial Services.
"For the first two weeks we can expect markets to react to corporate results and then when voting is in full swing, markets are likely to react to that."
The broader NSE Nifty was up 0.24 percent at 11,626.1 as of 0624 GMT, while the benchmark BSE Sensex was 0.16 percent higher at 38,746.87.
Nifty is heading for a first weekly fall in seven, while Sensex is on track for a seventh consecutive weekly gain.
Nifty's IT index gained nearly 1 percent with shares of Infosys Ltd and Wipro Ltd, which were up about 1.5 percent, leading the gains.
Shares of Bajaj Finance Ltd and IndusInd Bank Ltd, which rose over 2 percent each, were among the top gainers in the financials sector.
Generic drugmaker Cipla Ltd rose 3.4 percent after the U.S. FDA completed inspection at the company's Goa unit.
Among decliners, Britannia Industries Ltd and Tata Motors Ltd fell over 1.5 percent each.