The markets rallied on Thursday, boosted by sharp gains in auto stocks, while Titan Company surged to a record high after it indicated a strong recovery in demand in the second quarter. The S&P BSE Sensex was up 0.99 per cent at 59,775.55 and NSE Nifty 50 index rose 0.97 per cent to 17,816.25.
In the previous session, the benchmark indexes fell 1 per cent each after global equities saw a sharp sell-off as sky-high oil prices stoked inflationary concerns.
On Thursday, however, most Asian markets rose, reflecting overnight gains on Wall Street after U.S. politicians appeared close to a deal to avert a debt default, while Russia reassured Europe on gas supplies and oil prices pulled back from multi-year highs, helping calm volatile global markets.
"Global cues have improved - domestically things are looking up with unlocking and we can expect this momentum to hold until there are fresh domestic triggers," said Narendra Solanki, head of equity research (fundamental) at Anand Rathi Investment Services.
Domestic investors are now awaiting the outcome of the central bank's policy meeting and for another corporate earnings season to kick-off on Friday.
Titan Company rose 9.3 per cent on Thursday and was the top gainer on the benchmark indexes after the jewellery maker said it expects strong revenue growth in the second quarter.
Nifty's Auto index rose as much as 3.83 per cent to its highest in over seven months with all constituents of the sub-index trading higher. Tata Motors led the pack, with a 9.4 per cent jump.
Nifty's realty index advanced the most among major sub-indexes, rising 4.81 per cent to hit an 11-year high. Real estate developer Sobha led gains on the sub-index, with a 13.25 per cent jump.
Shares in conglomerate Reliance Industries rose 1.5 per cent after its retail arm entered a franchise agreement with U.S. chain 7-Eleven Inc to launch stores in India.