Indian stock markets advanced in early trading, snapping a five-day losing streak, as falling oil prices boosted investor sentiment across Asian markets.

The Nifty50 index on the National Stock Exchange rose 0.6% to 23,917.60 points, while mid-cap and small-cap indices both gained over 1%. The broader Asian equity markets rallied after the US paused its military strikes against Iran, providing a tailwind for Indian stocks.

Strategists at Jefferies noted in a research report that while market views on the AI sector remain divided, India's economy and corporate earnings continue to exceed expectations, leading to improved sentiment among global foreign investors toward Indian equities.

Infosys was the largest contributor to the Nifty50's gain, rising 3.3%. Among the index's 50 constituents, 42 stocks closed higher, while 8 ended the session lower.