West Asia tensions eased marginally, improving global risk appetite.
Brent crude slipped towards $76 a barrel after the recent surge.
Asian markets advanced, led by South Korea and Japan.
US markets ended higher on hopes of continued US-Iran negotiations.
Indian equities are expected to open in positive territory.
Gift Nifty, trading at GIFT City, closed at 24,096 on Thursday and climbed to around 24,163 in early Friday trade before easing slightly. The movement indicates that Indian markets are likely to open with healthy gains.
A temporary easing of geopolitical tensions in West Asia has lifted investor sentiment across global markets. Asian equities traded higher on Friday morning, crude oil extended its decline, and Gift Nifty signalled a firm opening for Indian equities.
Reports suggest that diplomatic efforts by Qatar, Pakistan and other countries helped prevent fresh military escalation on Thursday. There were also reports that Israel had informed the US about an alleged Iranian plot targeting US President Donald Trump earlier this week, while Washington indicated that negotiations with Iran would continue.
Gift Nifty, trading at GIFT City, closed at 24,096 on Thursday and climbed to around 24,163 in early Friday trade before easing slightly. The movement indicates that Indian markets are likely to open with healthy gains.
India's southwest monsoon deficit has narrowed significantly.
According to the India Meteorological Department, rainfall was 14 percent below normal as of July 9, compared with a 40 percent deficit just 12 days earlier. Above-normal rainfall during July 1-9 helped reduce the shortfall, while the monsoon has now covered the entire country.
Wall Street ended higher on Thursday after reports suggested the US would continue diplomatic engagement with Iran. Lower crude oil prices also supported sentiment.
Investors are increasingly confident that major US indices could finish the week with gains.
South Korean memory-chip maker SK Hynix's American Depositary Receipts (ADRs) are scheduled to debut on the New York Stock Exchange at $149.
Tesla rival SpaceX's private-market valuation also edged higher, with shares ending at $152.16.
US market close:
Dow Jones gained 139.02 points (0.27 percent) to 52,487.41.
S&P 500 rose 60.93 points (0.81 percent) to 7,543.64.
Nasdaq Composite jumped 336.24 points (1.30 percent) to 26,206.89.
US futures were marginally lower in early Friday trade.
Indian ADRs traded largely higher.
HDFC Bank gained during regular trading and closed at $26.56 after post-market gains.
ICICI Bank ended at $29.09 after giving up some post-market gains.
Infosys closed at $11.10 after a slight decline in extended trading.
Wipro ended at $1.86 with gains continuing after market hours.
Asian markets opened on a strong note.
South Korea's Kospi surged nearly 4 percent.
Japan's Nikkei gained around 2 percent.
Hong Kong's Hang Seng rose about 0.75 percent.
Australia's ASX advanced 0.30 percent.
Shanghai traded marginally lower.
Indian equities rallied through most of Thursday before witnessing heavy profit booking during the final 30 minutes of trade.
From the day's high, the Sensex lost 644 points and the Nifty surrendered 165 points before closing with modest gains.
Foreign institutional investors (FIIs) turned net sellers, offloading shares worth Rs 532.86 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 2,057.79 crore.
Market breadth remained positive, with advancing stocks comfortably outnumbering decliners on both the BSE and NSE.
TCS delivered a steady first-quarter performance. Revenue grew 2.7 percent year-on-year in constant currency and 14 percent in rupee terms, while net profit rose 4.7 percent. Operating margin declined by 130 basis points to 24 percent. Motilal Oswal retained its 'buy' recommendation and raised the target price to Rs 2,350.
Mahindra & Mahindra reported a 32.5 percent increase in June vehicle sales to 1.04 lakh units.
Apollo Micro Systems will acquire a 41.33 percent promoter stake in Premier Explosives for Rs 1,550 crore, followed by an open offer.
ONGC's board approved a project to create a 1.75 million-tonne crude oil storage facility at Mangaluru.
Dixon Technologies formed a joint venture to manufacture smartphones and other products for Vivo.
Anand Rathi Wealth reported a 17.5 percent rise in quarterly revenue and a 73.6 percent jump in net profit.
Havells India partnered with Norway-based Pixii to enter the battery energy storage systems business.
Gold gained after softer crude oil prices and a weaker US dollar reduced concerns over further interest-rate hikes.
Spot gold closed at $4,124.50 an ounce, up $47.80.
It eased slightly to around $4,112 in early Friday trade.
Kerala's 22-carat gold price rose Rs 960 per sovereign to Rs 1,05,920.
Silver traded above $60 an ounce, while platinum, palladium and rhodium also remained firm.
Industrial metals strengthened after geopolitical concerns eased.
Copper climbed over 2 percent to $13,356.40 per tonne.
Aluminium gained nearly 2 percent.
Zinc, tin and nickel also advanced, while lead edged lower.
International rubber prices extended gains.
Bangkok RSS-1 reached $302.30 per quintal.
RSS-3 rose to $298.90.
Kerala RSS-4 increased to Rs 27,400 per quintal.
Commodity prices continued their rally.
Cocoa jumped 5.19 percent to $6,366 per tonne, its highest level since last November, with prices up nearly 66 percent over the past month amid supply concerns in West Africa.
Arabica coffee surged more than 10 percent to $3.41 per pound as lower Brazilian production and tight inventories supported prices.
The US Dollar Index closed almost unchanged at 100.90 and was trading near 100.92 on Friday morning.
Euro: $1.1432
Pound: $1.3409
Japanese yen: 162.34 per US dollar
Chinese yuan: 6.79 per US dollar
The yield on the US 10-year Treasury eased to 4.557 percent.
The Indian rupee strengthened by 18 paise to close at 95.38 against the US dollar. In the offshore NDF market, the rupee was trading around 95.39.
Brent crude, which had surged following the latest West Asia tensions, corrected sharply.
Brent settled at $76.30 a barrel after falling more than 3 percent.
It slipped further to around $76.07 in early trade.
WTI crude traded near $71.92 a barrel.
Reduced geopolitical fears boosted risk assets.
Bitcoin climbed above $63,100.
Ether traded above $1,740.
Solana moved above $78.
Sensex: 76,741.82 (+0.31%)
Nifty 50: 23,962.80 (+0.34%)
Bank Nifty: 57,252.45 (+0.90%)
Nifty Mid Cap 100: 62,166.85 (+1.38%)
Nifty Small Cap 100: 19,120.85 (+1.80%)
Dow Jones: 52,487.41 (+0.27%)
S&P 500: 7,543.64 (+0.81%)
Nasdaq Composite: 26,206.89 (+1.30%)
US dollar: Rs 95.38 (-Rs 0.18)
Gold (spot): $4,124.50/oz (+$47.80)
Gold (22K, Kerala): Rs 1,05,920 per sovereign (+Rs 960)
Brent crude: $76.30/barrel (-$2.20)