The BSE Sensex and Nifty are up more than 1 percent as traders cite some window dressing buying, or buying of relative out performers on the last day of the month and the quarter.
The Nifty is up 5 percent so far in June and 13.2 percent so far in the June quarter.
The election of Narendra Modi as prime minister last month has raised optimism about reforms. The new government is due to unveil its maiden budget on July 10.
Bluechips lead gains: ICICI Bank gains 2.4 percent while Larsen & Toubro is up 2.8 percent.
Gains also track Asian stocks which are higher ahead of a packed week of economic data that will test investor hopes for a pick-up in the United States and global economies.
Overseas investors bought Indian shares worth 1.82 billion rupees ($30.32 million) on Friday, provisional exchange data shows.
