Indian equity markets extended their gains today, closing higher for the second consecutive session, driven by strong buying in banking, energy, and IT stocks. The upbeat mood in global markets, along with easing inflation expectations, supported investor sentiment throughout the trading day. Both benchmark indices traded in positive territory for most of the session, with intermittent consolidation in the afternoon hours.

The BSE Sensex jumped over 500 points to close near 78,493, while the Nifty 50 settled above 24,350 at 24,353, marking a steady recovery from recent volatility. Broader markets also participated in the rally, with mid-cap and small-cap indices outperforming the frontline indices, indicating strong risk appetite among retail and institutional investors.

Sector-wise, banking stocks led the rally on expectations of stable credit growth and healthy quarterly earnings. IT stocks also gained support from improved global demand outlook, while energy and auto sectors saw selective buying interest. On the other hand, FMCG stocks remained slightly under pressure due to margin concerns and cautious consumer demand trends.

In global cues, Asian markets ended mostly higher, while European markets opened on a firm note, helping reinforce positive sentiment in India. Additionally, soft crude oil prices provided relief to inflation concerns, which further boosted market confidence.

Going forward, analysts expect markets to remain range-bound but positive, with focus shifting to upcoming corporate earnings, foreign fund flows, and global macroeconomic data. Volatility may continue in the short term, but the overall bias remains cautiously optimistic as long as key support levels are held.