Indian shares rose to their highest since mid-February on Wednesday, led by gains in automakers and heavyweight financials, as appetite for risky assets improved globally on signs of progress in Ukraine-Russia peace talks.
The NSE Nifty 50 index climbed 0.72% to 17,449.75, as of 0423 GMT, while the S&P BSE Sensex rose 0.81% to 58,412.47, with both indexes on track for a third straight day of gains.
Most global equity markets reacted positively to Russia's promises on Tuesday to scale down its military operations near Kyiv and surrounding cities.
"The market mood is seen improving considerably in early trades amid progress in Russia-Ukraine peace talks and oil prices falling...," Prashanth Tapse, vice president (research) at Mehta Equities, wrote in a note.
India's blue-chip indexes have more than recovered their losses that were triggered by a spike in oil prices following Russia's invasion of Ukraine. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan is still nearly 4% below levels seen before the invasion.
"For the next two trading sessions, there is a bright chance the market may witness a positive tone as Window Dressing could be the preferred theme at Dalal Street as the current financial year comes to an end on Thursday," Tapse said.
In Mumbai, the Nifty Auto index gained 1.4%, led by a 3% rise in Hero MotoCorp after the two-wheeler maker hiked prices and denied a report that it made bogus expenses.
Tata Consumer Products jumped 4.9% after it said it would merge Tata Coffee with itself. Tata Coffee shares surged 12.6% to a two-month high.
Heavyweight lenders Bajaj Finserv and Bajaj Finance climbed 3.6% and 3.1%, respectively
Oil and Natural Gas Corp slid 4.9% to a two-week low after the oil producer said India would sell a stake of up to 1.5% in the company.
The Nifty Metal index slipped 2.1% as metal prices eased.