Oil prices surged driven by multiple factors, including a larger-than-anticipated drop in the US crude inventories and escalating geopolitical tensions, prompting concerns about tighter supplies
This came after the exchange, in March, received approval from markets regulator Securities and Exchange Board of India (Sebi) to launch these contracts.
Brent crude futures were up $4.44, or 4.1%, at $112.37 a barrel by 1321 GMT, adding to a 1.2% rise on Friday, while WTI crude futures rose $4.05, or 3.9%, to $108.75, extending Friday's 1.7% jump.
Crude oil prices fell nearly 8 percent on Monday on global weakness post Greece voted 'No' to bailout package, continuing downtrend for the third consecutive session.
Gilt funds benefited from the fall in yields. Net asset values went up as bond prices appreciated. At the same time equity markets turned volatile due to fall in crude oil prices.