Sensex gained nearly 400 points as Nifty climbed above 24,100.
IT stocks rallied over 3%, while Brent crude slipped below $71.
Lower volatility and optimism over US-Iran talks lifted overall market sentiment.
Indian benchmark indices traded higher on Thursday morning, supported by a sharp rebound in information technology stocks and easing crude oil prices after signs of progress in indirect US-Iran talks improved global risk sentiment.
At around 9:30 am, the BSE Sensex rose 389.02 points, or 0.51%, to 77,311.66, while the NSE Nifty 50 gained 109 points, or 0.45%, to trade at 24,114.85.
1 June 2026
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IT Stocks Lead Market Recovery
Information technology shares staged a strong comeback after four consecutive sessions of losses, emerging as the biggest contributors to the market's gains.
The Nifty IT index surged more than 3.60%, making it the top-performing sectoral index on the NSE. Infosys jumped 3.9%, HCL Technologies gained 3.4%, Tata Consultancy Services advanced 2.6% and Tech Mahindra climbed 2.3%, occupying the top spots among Nifty gainers. Wipro also traded firmly higher.
The rally extended to mid-cap technology stocks, with Coforge rising 3.8%, while Mphasis, Tata Technologies, Tata Elxsi and Persistent Systems gained between 2.7% and 3%.
The recovery followed a sharp correction in recent sessions, with investors returning to beaten-down IT counters despite mixed cues from global technology markets.
Lower Crude, Easing Volatility Boost Sentiment
Investor sentiment also received support after Brent crude slipped below $71 per barrel following reports that Qatar said Iran and the United States had made positive progress in indirect talks centred on the Strait of Hormuz.
Brent crude futures fell about 1.1% to around $70.80 a barrel, while US West Texas Intermediate crude declined 1.2% to about $67.74.
Lower oil prices are considered positive for India as they help ease inflationary pressures, improve the current account balance and reduce input costs for businesses.
Meanwhile, India VIX, the market's volatility gauge, declined nearly 3% to 12.89, signalling improving investor confidence and reduced uncertainty.
Positive Near-Term Trends
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said several favourable macro trends are supporting the market.
According to him, Brent crude falling below $71 strengthens India's macroeconomic outlook by supporting growth while keeping inflation under control. He also pointed to robust June passenger vehicle sales growth of 24.1%, indicating resilient domestic demand.
Vijayakumar added that the correction in South Korea's AI-driven market has reduced the attractiveness of AI-focused markets, benefiting countries such as India. He also noted that foreign institutional investor selling has moderated, allowing domestic institutional investors to provide stronger market support.
However, he cautioned that the progress of the southwest monsoon remains a key risk for the market. He expects banking and digital platform companies to remain well supported ahead of the June-quarter earnings season.
Key Technical Level
Rajesh Palviya, Head of Research at Axis Direct, said Wednesday's recovery reaffirmed the importance of the 24,000 level for the Nifty.
He noted that strong buying in FMCG, auto and realty stocks helped the index reclaim the psychological milestone, while softer crude prices continue to improve India's macroeconomic outlook by easing inflation and supporting the rupee.
From a technical perspective, Palviya said sustaining above 24,000 could pave the way for an advance towards 24,200. On the downside, a decisive breach below 23,800 may trigger renewed selling pressure, with the next key support placed around 23,600.
