Mumbai, Oct. 15 -- 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 ma...