Indian equity benchmarks ended higher with gains of over a percent on Thursday, in line with a rebound in global equities after recent sharp losses due to the conflict in West Asia. Markets cheered reports of the Iranian Deputy Foreign Minister saying the country is ready to abandon its nuclear program.

Some of the important factors in trade: 

Balanced trade relationship between India, Japan important for long-term sustainability: India said there is significant export potential for domestic firms in sectors such as pharmaceuticals, textiles, agriculture and services in Japan, stressing that a more balanced bilateral trade relationship is crucial for ensuring its long-term sustainability.

Middle East conflict presents several short-term obstacles for Indian economy: An external member of the RBI's rate-setting panel Nagesh Kumar has said that ongoing Middle East conflict presents several short-term obstacles for Indian economy, but it is unlikely to significantly affect the country’s long-term growth prospects.

Middle East crisis may hit trade, LNG-dependent sectors if disruption persists: Crisil Ratings said a prolonged war in the Middle East could adversely affect several Indian sectors with direct trade exposure to the region, including basmati rice, fertilisers, diamond polishing, airlines and travel operators.

Hospitality industry’s stocks in watch: Rating agency ICRA in its latest report has said that the revenues of the Indian hospitality industry are likely to grow by 9-12 per cent in the current fiscal year (FY26) despite the high base of FY25. 

Global front: European markets were trading higher as France's industrial production rebounded in January, driven by the robust recovery in transport equipment output. Asian markets settled higher after U.S. jobs and services data beat forecasts, and reports emerged that Tehran may be willing to hold talks to end the war.  

Finally, the BSE Sensex rose 899.71 points or 1.14% to 80,015.90 and the CNX Nifty was up by 285.40 points or 1.17% to 24,765.90.        

The BSE Sensex touched high and low of 80,303.83 and 79,201.69 respectively. There were 19 stocks advancing against 11 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 2.58%, Power up by 2.41%, Metal up by 2.32%, Industrials up by 2.32% and Capital Goods up by 2.29%, while IT down by 0.50% and TECK down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 4.51%, Larsen & Toubro up by 3.88%, NTPC up by 3.36%, Reliance Industries up by 3.29% and Bharat Electronics up by 2.98%. On the flip side, Tech Mahindra down by 1.30%, HCL Technologies down by 0.73%, Hindustan Unilever down by 0.39%, ICICI Bank down by 0.37% and SBI down by 0.27% were the top losers.

Meanwhile, stressing that a more balanced bilateral trade relationship is crucial for ensuring long-term sustainability, Commerce Secretary Rajesh Agrawal has said that there is significant export potential for Indian firms in sectors such as pharmaceuticals, textiles, agriculture and services in Japan. The commerce ministry said Agrawal was in Tokyo to attend the Joint Committee Meeting under the India-Japan Comprehensive Economic Partnership Agreement (CEPA). 

During his meeting with the Japanese Vice Minister of the Ministry of Economy, Trade and Industry, the secretary highlighted the need to enhance and diversify bilateral trade and investment. He underscored the importance of harnessing the full benefits of the CEPA, including the movement of natural persons.

He also underlined the importance of achieving a more balanced bilateral trade relationship to ensure long-term sustainability. Besides, India's exports to Japan dipped 3.71 per cent to $4.92 billion during April-January this fiscal (FY26). However, imports jumped 13.47 per cent to $18.08 billion. India has a trade deficit of $13.16 billion.

CNX Nifty touched high and low of 24,854.20 and 24,529.40 respectively. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 3.82%, Hindalco up by 3.79%, Larsen & Toubro up by 3.72%, Bharat Electronics up by 3.39% and NTPC up by 3.18%. On the flip side, Tech Mahindra down by 1.38%, ICICI Bank down by 0.89%, HCL Technologies down by 0.61%, SBI down by 0.51% and TCS down by 0.49% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 29.95 points or 0.28% to 10,597.60, France’s CAC rose 20.27 points or 0.25% to 8,188.00 and Germany’s DAX gained 51.34 points or 0.21% to 24,256.70. 

Asian markets settled higher on Thursday tracking Wall Street’s gains overnight after US jobs and services data beat forecasts, and reports that operatives from Iran’s Ministry of Intelligence have signalled openness to the US Central Intelligence Agency regarding talks to end the current conflict. South Korea's Kospi surged 9.63% to close at 5,583.90 after tumbling nearly 20% over the previous three sessions, as semiconductor and broader technology shares bounced back from the historic selloff. Moreover, Chinese and Hong Kong shares gained after China signalled a shift toward economic rebalancing, setting its 2026 growth target at 4.5%-5% from the ‘around 5%’ pace of recent years. China’s 15th five-year plan pledged higher spending on innovation, high-tech industries, scientific research, and household consumption, while keeping fiscal deficit at 4% of GDP and inflation near 2%. Sentiments improved further after China unveiled plans to inject 300 billion yuan ($44 billion) into state-owned banks this year to guard against systemic risks, and boost financing for technology companies amid intensifying US rivalry.