Sensex gained 579 points and Nifty closed above 24,175 on broad-based buying.
Nifty IT surged nearly 5%, leading the market rebound after four losing sessions.
Lower crude oil, Fed optimism and the India-Japan Summit supported market sentiment.
Indian benchmark indices extended their winning run on Thursday, supported by a sharp rebound in information technology stocks, easing crude oil prices and broad-based buying across sectors. Optimism over global interest rates and expectations surrounding the India-Japan Summit also aided market sentiment.
The BSE Sensex climbed 579.48 points, or 0.75%, to close at 77,502.12, while the NSE Nifty 50 gained 169.85 points, or 0.71%, to settle at 24,175.70, ending close to the 24,200 mark.
1 June 2026
Get the latest issue of Outlook Business
After a firm start, benchmark indices extended gains through the session as sustained buying in IT, auto and realty stocks outweighed weakness in capital goods, power and PSU banking shares.
The broader market also remained strong. The Nifty Midcap 100 rose 0.5%, while the Nifty Smallcap 100 outperformed with a gain of 1.2%, indicating continued buying beyond frontline stocks.
IT Stocks Stage Strong Comeback
Technology shares led Thursday's rally after witnessing sustained selling over the previous four sessions.
The Nifty IT index surged nearly 5%, snapping its four-day losing streak and emerging as the best-performing sectoral index.
Infosys, Tata Consultancy Services, Tech Mahindra and HCL Technologies featured among the top gainers on the Nifty 50, alongside Bajaj Finserv. On the other hand, Max Healthcare, Larsen & Toubro, Nestlé India, Axis Bank and Tata Motors Passenger Vehicles ended among the top losers.
Among sectoral indices, auto, realty, consumer durables and metal gained around 1% each, while capital goods, power, telecom and PSU banks declined between 0.4% and 0.7%.
Market participation remained robust, with around 160 stocks hitting fresh 52-week highs on the BSE. The list included Oracle Financial Services Software, Sona BLW Precision Forgings, Aegis Logistics, Inventurus Knowledge Solutions, Krishna Institute of Medical Sciences, Adani Enterprises, Nippon Life India Asset Management, Marico, Delhivery, Federal Bank, CG Power & Industrial Solutions and Zydus Wellness, among others.
Lower Crude, Fed Hopes Support Markets
Vinod Nair, Head of Research at Geojit Investments, said easing tensions around the Strait of Hormuz pushed crude oil prices lower, improving the outlook for inflation and global growth.
He said investor sentiment was also supported by dovish remarks from the US Federal Reserve Chair, which reinforced expectations of a more supportive global interest-rate environment.
Nair added that optimism surrounding the India-Japan Summit, including expectations of progress on trade, defence, semiconductor manufacturing, artificial intelligence cooperation, a proposed rupee-yen settlement framework and stronger bilateral capital flows, also boosted market confidence.
He noted that the IT sector's rally was driven by short covering as well as growing confidence that Indian technology companies will continue to play a key role in enterprise AI adoption.
According to Nair, investors will now closely track the US non-farm payrolls report, developments from the India-Japan Summit and the upcoming Q1 FY27 earnings season for further market direction.
Rupee Weakens Despite Early Gains
The Indian rupee erased its opening gains to close 15 paise lower at 95.39 against the US dollar, compared with the previous close of 95.24.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the rupee remained under pressure due to continued foreign institutional investor outflows, profit booking and a firm Dollar Index above 101.
He added that markets are awaiting key US non-farm payrolls and unemployment data, which could determine the next move in the dollar and emerging market currencies. According to Trivedi, the rupee is expected to trade in the 95.10-95.75 range in the near term, with foreign fund flows and global risk sentiment remaining key drivers.
Separately, CSM Technologies made a weak stock market debut. The shares listed at ₹113, the upper end of the IPO price band, before ending 5% lower at ₹107.35 on their first day of trading.
