02 July,2026 05:26 PM IST | Mumbai | mid-day online correspondent
Benchmark indices rally on India-Japan deals, falling oil prices and strong IT stocks. Representational Pic
Indian stock markets closed sharply higher on Thursday, supported by falling crude oil prices and improved global sentiment following encouraging developments in US-Iran trade discussions.
The BSE Sensex jumped 579.48 points, or 0.75 per cent, to close at 77,502.12. Meanwhile, the NSE Nifty rose 169.85 points, or 0.71 per cent, ending the session at 24,175.70.
Midcap and smallcap stocks also participated in the uptrend. The Nifty MidCap index rose 0.48 per cent, while the Nifty SmallCap index outperformed with a gain of 1.25 per cent.
Most sectoral indices ended in the green. The Nifty Auto, Nifty Consumer Durables, and Nifty Realty indices posted notable gains, supported by improving investor sentiment.
Technology shares led the rally, with major IT companies. Infosys surged 5.64 per cent, followed by Tech Mahindra (4.32 per cent), Tata Consultancy Services (4.28 per cent), and HCL Technologies (4.12 per cent).
Bajaj Finserv, Adani Ports, Titan, and ICICI Bank also ended with strong gains.
However, some heavyweight stocks such as Larsen & Toubro, Maruti Suzuki, Axis Bank, and Reliance Industries ended in the red, reported PTI.
The strong performance helped the Nifty IT index record its biggest single-day gain since May 2025, reported IANS.
Investor confidence was further boosted after India and Japan announced key strategic initiatives following talks between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi.
The two countries agreed on an economic partnership framework, defence cooperation for co-developing military hardware, and joint initiatives in artificial intelligence and energy supply chains.
Analysts said the Nifty showed steady buying throughout the session and moved closer to the 24,200 resistance level. A sustained breakout above this range could push the index towards 24,400-24,450, where the 200-day exponential moving average (EMA) is placed.
On the downside, the 24,000 level is expected to act as immediate support, reported IANS.
Market experts noted that easing energy prices and positive global developments boosted investor confidence. They also pointed to improving sentiment due to strategic discussions between India and Japan in areas such as artificial intelligence, defence technology, and energy security, as per reports.
"Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment," Vinod Nair, Head of Research, Geojit Investments Limited, said, reported PTI.
Asian markets saw heavy losses amid global tech weakness. South Korea's Kospi plunged 7.89 per cent, Japan's Nikkei fell 2.47 per cent, and Shanghai's Composite dropped 2.03 per cent. Hong Kong's Hang Seng, however, ended 0.76 per cent higher.
European markets traded in positive territory, while US markets closed lower on Wednesday.
Analysts noted that a global sell-off in technology stocks intensified, especially in chip and AI-related companies, raising concerns about overvaluation after a strong rally this year.
(With IANS and PTI Inputs)
