Shares of Oil and Natural Gas Corp (ONGC) and Oil India gained 2% and 2.4%, respectively, aided by higher crude prices that boost revenues and profit margins of upstream oil producers.
An intensifying Middle East conflict kept crude prices above the $100 per barrel mark.
Iran said it attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers in the largest attacks on shipping in the six-month-old conflict.
Higher oil prices are detrimental for India, the world's third-largest importer of the commodity, as they increase the import bill, worsen inflationary pressures and weigh on economic growth and corporate profitability.
Brent crude futures inched lower by 0.1% to $101.10 a barrel by 0256 GMT. US West Texas Intermediate crude was at $96.24 a barrel, up 0.2%.