India's GIFT Nifty was up 1.36% at 20,630 as of 8:24 a.m. IST. The blue-chip Nifty 50 index on Friday settled at 20,267.90, a record close, to cap off its best week in five months.

Wall Street equities advanced on Friday, while U.S. Treasury yields fell after the Federal Reserve Chair vowed to move carefully on interest rates.

Powell said the risk of hiking rates too much and slowing the economy more than necessary have become "more balanced" with the risk of not hiking enough to control inflation.

The odds of a 25 basis-point rate cut in March 2024, has almost tripled to 60% from 21% a week ago.

Asian markets opened higher. [MKTS/GLOB]

The state assembly election results, which were announced on Dec. 3 are positive for markets, analysts said.

"We expect market sentiment to strengthen further and the prospect of a pre-election (2024 Lok Sabha election) rally is quite strong, in our view," said Gautam Duggad, research analyst at Motilal Oswal Financial services wrote in a note, citing rising hopes of policy continuity.

Indian shares logged their best month in 2023 in November, supported by return in foreign portfolio investor (FPI) inflows, after a two-month selling streak.

STOCKS TO WATCH:

** Hero MotoCorp: Two-wheeler maker posts 25.6% year-on-year growth in sales in November.

** PVR Inox: Company gets favourable tribunal order on supply of food and beverage (F&B) at cinemas in pre-GST regime, tax demand worth 366.6 million rupees to be waived off.

** Tata Power Company: Company acquires Bikaner-Neemrana transmission project in Rajasthan for 15.44 billion rupees to boost renewable energy evacuation.** Strides Pharma Science: Company launches drug to reduce triglyceride levels in adult diabetes patients.

(Reporting by Bharath Rajeswaran; Editing by Dhanya Ann Thoppil)