Indian benchmark indices ended the previous trading session on a positive note, with both the Nifty 50 and Sensex closing higher.
The Nifty 50 gained 67.90 points, or 0.29%, to finish at 23,414.30, while the BSE Sensex advanced 564.03 points, or 0.76%, closing at 74,858.99.
Market sentiment was supported by easing crude oil prices, lower bond yields and renewed hopes of diplomatic progress on key global issues.
According to Vinod Nair, Head of Research at Geojit Investments, investor sentiment improved ahead of the expected US-China talks, while hopes of diplomatic engagement between the US and Iran at the United Nations also provided some relief.
Nair also noted that the corporate earnings cycle appeared to be showing signs of improvement. Attractive valuations in selected market segments could support equities over the medium term.
However, investors are likely to closely monitor geopolitical developments and interest-rate expectations, which could remain important drivers of market direction in the near term.
