Mumbai (Maharashtra) [India], October 15 (ANI): The stock markets closed sharply higher on Thursday, with the Sensex surging 1,533.72 points or 2.11 per cent to 74,315.61 and the Nifty 50 gaining 374.65 points or 1.66 per cent to 22,997.35, even as major Asian markets witnessed heavy selling amid concerns over stretched valuations of artificial intelligence companies and higher US inflation.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities gained as the global sell-off in technology-heavy markets improved India's relative appeal and encouraged investors to buy domestic large-cap technology stocks, private financial companies and defensive stocks.

He said falling bond yields, stability in the rupee and lower crude oil prices also supported market sentiment, while hopes of a possible reconsideration of equity taxation added to risk appetite.

However, Nair cautioned that weakness in small and mid-cap stocks and selling in public sector banks showed that the rally lacked broad participation. He said the sustainability of the gains would depend on second-quarter earnings, wider market participation, the return of foreign investors and stability in crude oil prices and the rupee.

In commodities, Brent crude oil prices fell more than 2 per cent to USD 103.55 per barrel at the time of reporting. Gold prices rose more than 1.3 per cent to Rs 1,47,804 per 10 grams, while silver gained 1.32 per cent to Rs 2,11,083.

On the National Stock Exchange, Nifty Auto gained 1.67 per cent, while Nifty IT rose 1.82 per cent. Nifty Private Bank advanced 1.89 per cent, and Nifty Realty closed 0.72 per cent higher. Nifty Metal gained 0.10 per cent.

However, Nifty Media declined 1.47 per cent, and Nifty PSU Bank fell 1.55 per cent. IDBI Bank shares plunged 8 per cent to close at Rs 83.07 per share on the NSE after the Cabinet approved a Rs 52,878 crore stake sale to Fairfax at a discount.

Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said the Nifty gained 375 points to reclaim the 22,900 level. He identified 22,950-22,900 as near-term support and 22,750 as the next support level, with resistance at 23,050-23,150.

He added that the Sensex had support at 74,100-73,900, while resistance stood at 74,600-74,900.

Meanwhile, Asian markets faced heavy selling pressure. Japan's Nikkei plunged more than 5 per cent to close at 64,340, while South Korea's KOSPI tanked more than 8 per cent to 5,554. Taiwan's weighted index fell 3.53 per cent to 46,969, and Hong Kong's Hang Seng declined 1.15 per cent to 24,038. (ANI)