Indian shares closed higher as easing US-Iran tensions stabilised oil prices, igniting risk appetite at the world's third-largest oil consumer.
US President Donald Trump responded to missile attacks by Iran on US-led forces in Iraq with sanctions as opposed to a military retaliation.
The Nifty ended 1.58% higher at 12,215.90, while the benchmark Sensex closed up 1.55% at 41452.35.
"Markets have got a release from the bear grip following easing Iranian tensions, but caution continues to be the watchword as traders prepare to greet Q3 (earnings) with limited expectations amid slow down fears," said Anand James, chief market strategist at Geojit Financial Services.
Metal stocks rose after the Indian government eased laws to fast-track mining at sites and also imposed import duty on copper wire rods. The Nifty Metal index closed 1.43% higher.
Shares of JSW Steel was the second biggest gainer on the Nifty, closing 5.94% higher while Tata Consultancy Services was the biggest loser, closing 1.81% lower.