Indian benchmark indices rose smartly, with the Sensex jumping as IT stocks led a broad-based rally across sectors.

Heavyweight technology shares powered the advance after strong quarterly results and positive commentary from global brokerages. Banking and auto stocks joined the rally, while midcaps and smallcaps also ended higher, signalling healthy market breadth.

Analysts say the rally reflects renewed confidence in corporate earnings after a choppy few months. Foreign investors have turned buyers again, and domestic mutual funds continue to pour in record monthly flows, providing a cushion against global volatility.

Global cues also helped. A calmer US bond market and hopes of steady rate cuts by major central banks have lifted risk appetite across emerging markets.

Market veterans urge caution despite the cheer. Valuations in several pockets look stretched, and any global shock could trigger a quick pullback. For long-term investors, advisors recommend sticking to asset allocation rather than chasing the rally.