Indian equities closed sharply higher on Thursday as the Sensex surged 879 points to end at 72,472.33, while the Nifty reclaimed the 22,500 mark. Buying was broad-based, with all sectoral indices ending in the green.

Investors took comfort from easing geopolitical worries after US President Donald Trump said America would not strike Iran before the November 3 midterm elections. The remark also cooled crude oil prices, which had jumped 4% earlier on Middle East tensions.

Banking, auto and IT stocks led the gains. Market breadth was strong, with advancing stocks outnumbering decliners by a wide margin. Analysts said the rally was also helped by hopes of steady foreign inflows and a stable rupee.

The Sensex had gained over 1,000 points intraday before paring some gains. Traders will now watch global cues and the start of the earnings season for direction.

The rally lifted investor wealth by several lakh crore rupees in a single session. Despite the strong close, analysts advised caution, saying global cues and crude oil movements will decide whether the momentum can sustain into next week.