The BSE Sensex rose nearly 200 points in early trade, while the NSE Nifty 50 gained around 60 points at the opening bell.
Although the benchmark indices later pared some of their initial gains, they continued to trade in positive territory as investors remained cautiously optimistic despite mounting geopolitical tensions.
Market participants are closely monitoring developments in West Asia after the United States launched fresh strikes on Iran, raising fears of a wider regional conflict and potential disruptions to global energy supplies.
Reflecting these concerns, Brent crude extended its rally for a fourth straight session, trading above US$85 per barrel, as investors assessed the possibility of supply constraints from the oil-rich region.
Analysts said gains in domestic equities were supported by sustained buying in select heavyweight banking, financial and IT stocks, though volatility is expected to remain elevated as global markets react to geopolitical developments and fluctuations in crude oil prices.
Investors will also keep an eye on foreign institutional investor (FII) activity, global market cues and upcoming corporate earnings, which are expected to dictate market sentiment in the near term.