The benchmark BSE Sensex climbed more than 450 points in early trading, while the NSE Nifty 50 rose 0.55 percent to 24,154.50, reflecting renewed investor confidence across sectors.
Crude prices continue to retreat
Global oil prices extended their decline after a sharp fall in the previous session.
Brent crude, the international benchmark, dropped 4.3 percent on Wednesday and was trading near $73 per barrel on Thursday. Meanwhile, US West Texas Intermediate (WTI) crude slipped below the $70-per-barrel mark.
The easing in oil prices is seen as a positive development for India, one of the world's largest crude importers, as lower energy costs can help reduce inflationary pressures and improve corporate profitability.
Global markets provide support
Investor sentiment was also aided by positive trends in global equity markets, which have welcomed signs of easing geopolitical uncertainty and a moderation in energy prices.
Market participants expect lower oil prices to support consumption-driven sectors while reducing concerns over imported inflation, thereby improving the broader economic outlook.
Indian equities face volatility amid geopolitical tensions
Indian equities had faced bouts of volatility in recent weeks amid concerns over escalating geopolitical tensions and their potential impact on global energy supplies.
The conflict-driven surge in crude prices had raised fears of higher inflation, increased import bills and pressure on corporate margins.
However, with tensions appearing to ease and oil prices retreating from recent highs, investors have returned to risk assets, helping benchmark indices recover.
Analysts say sustained stability in crude prices and supportive global market conditions could remain key drivers for Indian equities in the near term.