Indian shares rose for fifth straight session and posted their first weekly gain in three on Friday, led by Tata Steel on strong quarterly production numbers 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.
The S&P BSE Sensex gained 0.7 percent at 31,814 while the broader NSE Nifty gained 0.92 percent to 9,979.
Indian shares posted their first weekly gain in three, with both the indexes up about 2 percent for the week.
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 5 percent, NPTC added 2.7 percent, State Bank of India gained 2 percent while Sun Pharma advanced 3.2 percent.
Tata Steel was among the top gainers on the NSE index after the steelmaker said its provisional production and sales in India rose 11 percent and 19.5 percent, respectively, in the second quarter.
The S&P BSE PSU index advanced 1.8 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 20 percent after Emkay initiated coverage on the stock with a 'Buy' and price target of Rs 2,212
Shilpa Medicare gained 8 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.
