Indian benchmark indices traded higher on Thursday, July 2, as investor sentiment improved amid falling crude oil prices.

The Nifty 50 rose 0.50% to close at 24,127.15, while the BSE Sensex gained 0.48% to 77,294.46.

The market rally was underpinned by reports that the United States and Iran had made "positive progress" during indirect talks facilitated by Qatar, reducing near-term geopolitical risk premiums in energy markets.

The decline in oil prices provided a tailwind for Indian equities, particularly benefiting sectors sensitive to input costs and trade balances.

With crude benchmarks easing, market participants appeared to price in a temporary de-escalation of tensions in the Middle East, allowing risk appetite to return to emerging market assets.

Analyst activity in the Indian market remains focused on short-term trading opportunities.