Reuters Market Eye - The BSE Sensex extends gains to 0.95 percent, while the broader 50-share Nifty adds 1 percent.
Banks lead gainers ahead of the RBI's policy decision on Monday as traders bet the central bank could deliver a cut in the repo rate to bolster growth, while also cutting the cash reserve ratio to ease tight liquidity.
ICICI Bank gains 2.9 percent, while HDFC Bank gains 1.6 percent.
Property shares also gain; DLF up 1.2 percent.
Tata Motors shares extend gains to 4.5 percent, after global sales rose 12 percent in May.
Improved global backdrop helps, as major central banks plan to take coordinated action to stabilise markets should Greek elections result in turmoil.