India's Nifty 50 and Sensex indices both gained approximately 0.4%. Federal Reserve Chairman Powell delivered remarks at the Jackson Hole symposium on Friday, hinting at a potential rate cut in September.

The Indian IT stock index surged 2.7%, as potential US rate cuts sparked expectations for a recovery in technology spending, given that the US represents a key market for most IT companies.

Thirteen out of 16 major sectors posted gains, while mid-cap and small-cap indices rose 0.4% and 0.3% respectively.

Metal stocks climbed nearly 1% as rate cut expectations pressured the US dollar, boosting metal prices.

Investors are also monitoring any developments in US-India trade negotiations, as an additional 25% tariff on Indian goods is set to take effect on August 27.

Among individual stocks, Nazara Technologies fell 7%, marking its fourth consecutive trading day of declines following the government's ban on online real-money gaming.