Benchmark indices Sensex and Nifty climbed in early trade on Thursday as renewed optimism surrounding the progress in restarting US- Iran negotiations has helped ease immediate geopolitical concerns and driven crude oil prices lower.
A positive trend in global markets and fresh foreign fund inflows also added to markets' optimism.
The 30-share BSE Sensex jumped 619 points to 78,730.32 in early trade. The 50-share NSE Nifty climbed 169.65 points to 24,400.95.
From the 30-Sensex firms, Eternal, Infosys, Tech Mahindra, Bajaj Finance, Tata Steel and InterGlobe Aviation were the major winners.
Sun Pharma and Titan were the laggards.
Brent crude, the global oil benchmark, traded 0.04 per cent up at USD 94.97 per barrel.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
US markets ended mostly higher on Wednesday.
"Renewed optimism surrounding the progress in restarting USâIran negotiations has helped ease immediate geopolitical concerns, thereby enhancing overall risk appetite.
Brent crude oil prices have moderated and are consolidating in the range of USD 94â95 per barrel, which is a constructive development for the domestic market," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 666.15 crore on Wednesday, according to exchange data.
"Earlier, sustained FII outflows triggered by elevated oil prices and geopolitical uncertainty had weighed on Indian equities.
However, recent sessions indicate signs of stabilization, with foreign institutional investors turning marginal net buyers, contributing approximately Rs 666 crore in the previous session," he added.
On Wednesday, the Sensex jumped 1,263.67 points or 1.64 per cent to settle at 78,111.24.
The Nifty climbed 388.65 points or 1.63 per cent to end at 24,231.30.
