Indian shares followed their Asian peers higher after U.S. President Donald Trump confirmed he would delay a planned tariff increase on Chinese imports, allaying fears around global growth.
Asian shares scaled a 5-month peak as talks between Washington and Beijing showed they were making "substantial progress". Earlier in the session, MSCI's broadest index of Asia-Pacific shares outside Japan touched a level last seen in October.
The broader Nifty rose 0.16 percent to 10,809.30 as of 0626 GMT, while the benchmark Sensex gained 0.26 percent to 35,965.83.
"Market is taking cues from global markets, momentum in terms of (India) government policies, expectations from elections, even though they are still far away," said Sumit Pokharna, vice president, Kotak Securities.
Geopolitical tensions have mounted between India and Pakistan, after a suicide attack on Feb. 14 killed at least 40 Indian troops in Kashmir. The Pakistan-based militant group Jaish-e-Mohammad claimed responsibility for the attack.
Market participants are wary about these geopolitical risks, and they expect some action by the government before the national elections scheduled for May, Pokharna said.
Financials stocks led the gains, with heavyweights HDFC Bank Ltd and ICICI Bank Ltd rising as much as 1 percent and 1.5 percent, respectively.
IT stocks such as Infosys Ltd and Tata Consultancy Services Ltd also advanced, with both rising more than 1 percent.
Realty stocks cheered a cut in the goods and services tax charged on sale of residential properties under construction.
Shares in Sobha Ltd, Oberoi Realty Ltd and Godrej Properties Ltd rose as much as between 3.5 percent to 4.4 percent.
Meanwhile, industrials dragged the NSE index, with shares of Adani Ports and Special Economic Zone Limited plunging as much 9.1 percent.
The port infrastructure company signed a deal to acquire some agricultural logistics business from Adani Enterprises Ltd which brokerages say appears 'expensive' and might lead to resurgence of investor concern around related-party transactions.