At close, the Sensex advanced 509.73 points, or 0.69 per cent, to settle at 74,616.58, while the Nifty gained 155.40 points, or 0.68 per cent, to close at 23,123.65.
According to Bajaj Broking Market Commentary, sectorally, barring consumer durables and PSU banks, all other indices ended in the green.
The Information Technology index rose 2.5 per cent, the metal index gained 1.5 per cent, realty advanced 1.7 per cent, and the media index added 1 per cent.
In terms of Nifty outlook, the volatility is likely to remain elevated in the near term, amid geopolitical tensions and higher crude oil prices.
Immediate support is placed at yesterday's low of 22,719, index sustaining above the same will keep the current pullback intact and will open further upside towards the recent high of 23,450 levels in the coming sessions.
A drop below 22,700 would invalidate the current pullback and could trigger further downside, potentially dragging the index toward last week's low near 22,200. Key short-term support is placed at 22,000-21,800 zone being the trendline support joining last 2-year lows and the 200 weeks EMA.
Index is showing initial sign of pause in the current downtrend. However, index needs to form a sequence of higher highs and higher lows in the daily chart, along with a sustained close above 23,465 to signal any reversal in the downward trend.
Motilal Oswal Financial Services, in a media note, outlines that the ongoing Iran-Israel/US conflict has disrupted energy markets, leading to higher inflation risks, earnings downgrades, and heightened market volatility. Indian markets have also witnessed correction and underperformance versus global peers amid sustained FII outflows.
“Despite these near-term pressures, domestic investors continue to provide strong support, with robust DII inflows and sustained retail participation helping stabilize markets," said.
On the earnings front, growth is expected to be led by NBFC lending, private banks, metals, telecom, technology, and automobiles, while sectors such as capital goods, consumer durables, and cement may weigh on overall performance. Mid- and small-cap segments are likely to outperform, supported by stronger earnings growth compared to large caps.