India's benchmark BSE index gains 0.85 percent, and the NSE stock index is also up 0.84 percent, heading for a second day of gains.
The NSE closed above its 200-day moving average on Thursday, helping improve sentiment.
Foreign investors bought 1.6 billion rupees ($26.6 million) of shares and 15 billion rupees in equity derivatives on Thursday, according to exchange data, also helping sentiment.
Foreign investors were heavy sellers in June, selling worth 110.26 billion rupees.
ITC Ltd is up 0.9 percent, heading for a second day of gains after the company raised the price of its Gold Flake Regular Filter cigarettes.
Reliance Industries Ltd gains 2.2 percent on hopes that recent hefty increase in gas prices would improve its earnings in the medium term.