Domestic market benchmarks, the Sensex and the Nifty 50, snapped their two-day losing run, tracking positive global cues, amid a decline in oil prices. The Sensex closed 331 points, or 0.43%, higher at 77,264.51, while the Nifty 50 settled at 24,175.65, up 85 points, or 0.35%.
Broad-based buying also lifted the mid- and small-cap segments. The BSE 150 Midcap climbed 0.16%, while the 250 Smallcap rose by 0.33%.
Market sentiment improved after oil prices declined amid diplomatic efforts to resolve the US-Iran conflict.
Brent crude futures traded below $90 per barrel, dropping to $87.63 per barrel from $89.17 per barrel.
Qatar Prime Minister and Foreign Minister Mohammed bin Abdulrahman bin Jassim Al Thani met Iranian President Masoud Pezeshkian in Tehran on Thursday as Doha. Qatar-Iran discussions come amid a broader diplomatic push over the Strait of Hormuz.
The rupee, meanwhile, climbed 6 paise to close at 95.39 per dollar, as per the provisional data, due to a decline in crude oil prices and reportedly an intervention by the Reserve Bank of India.
Positive global cues also influenced sentiment. Among global peers, France's CAC rose more than 1%, while Germany's DAX and the UK's FTSE also rose by up to half a per cent ahead of the US Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium.
The rise in benchmarks can be largely attributed to the gains in select IT and banking heavyweights. Infosys and HDFC Bank contributed the most to the gains in the Sensex index. However, ICICI Bank ended as the top drag.
In terms of returns, TCS, Infosys, Tech Mahindra, HCL Tech, and Titan ended as the top gainers in the Sensex index. On the flip side, ICICI Bank, UltraTech Cement, Asian Paints, and ITC ended as the top laggards in the index.
In the Nifty pack of stocks, TCS, Tech Mahindra, Infosys, HCL Tech, and Wipro ended as the top gainers, while ICICI Bank, Shriram Finance, ITC, and UltraTech Cement ended as the top laggards.
The Nifty IT index surged 3.51%, boosted by Nvidia's strong results and revenue outlook.
"Strong gains in IT stocks helped Indian equities close higher today. The sector was supported by Nvidia's strong earnings and upbeat outlook, which reinforced optimism around sustained AI-related investments and benefited firms involved in enterprise AI deployment and workflow integration. However, investor participation remained selective as markets awaited comments from the Fed Chair at the Jackson Hole symposium for greater clarity on the US interest-rate outlook and global liquidity conditions," Vinod Nair, Head of Research, Geojit Investments, noted.
Markets will react to cues from Warsh's Jackson Hole speech. The Fed Chairman may not reveal cues about the September policy, but his views on evolving macroeconomic trends could be a key trigger for markets.
News flows surrounding the US-Iran conflict will remain a key trigger for markets.
"With the Q1FY27 earnings season largely concluding on a healthy note, focus is gradually shifting towards the sustainability of earnings growth amid evolving global macroeconomic conditions. While supportive domestic liquidity conditions provide stability to the market, unresolved West Asia tensions and elevated crude oil prices remain key monitorables, keeping investors watchful of potential risks to growth and corporate profitability," said Nair.
