Indian shares extended gains on Friday, led by oil and banking shares while positive Asian sentiment also supported risk appetite.
Asian stocks rose after optimism over U.S. tax reform plans lifted Wall Street shares to new highs.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 percent, poised for a 1.6 percent gain on the week.
The S&P 500 posted its sixth straight record high close on Thursday, its longest run since 1997, as investors cheered increased prospects for a tax overhaul with Congress moving closer to agreement on a budget resolution, Reuters reported.
At 0630 GMT, the S&P BSE Sensex gained 0.58 percent at 31,782 while the broader NSE Nifty gained 0.7 percent to 9,957.
Expectations also built up that Friday's GST Council meeting may provide some relief to exporters and SMEs in terms of faster refunds and compliance.
Among the top Sensex gainers: Tata Steel rose 4 percent, NPTC added 3.5 percent, State Bank of India gained 2 percent while Coal India advanced 1.8 percent.
The S&P BSE PSU index advanced 1.5 percent. The government may cut its stakes in state-run banks to 52 percent, Sanjeev Sanyal, principal economic adviser at the finance ministry, said at a World Economic Forum event in New Delhi.
BASF India jumped 10 percent after Emkay initiated coverage on the stock with a 'Buy' and price target of Rs 2,212
Shilpa Medicare gained 7 percent after Motilal Oswal maintained 'Buy' on the stock with price target of Rs 805.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.