Benchmark indices extended their morning gains into the afternoon, with the Sensex surging 995 points (1.29 per cent) to trade at 78,334.01 and the Nifty climbing 291.70 points (1.24 per cent) to 23,745.50. The rally was supported by a recovery in oversold conditions as the Nifty's RSI dipped below 30 earlier, signalling a strong pullback.  

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Sectoral and stock highlights  
- All 13 sectoral indices were in the green, led by Nifty IT and Auto, both up over 2 per cent.  
- IT heavyweights TCS, HCL Tech, and Infosys drove gains, recouping yesterday's losses.  
- Auto players like M&M, Maruti Suzuki, Tata Motors, and Hyundai Motor India surged up to three per cent.  
- Mid and small-cap indices outperformed the broader market, advancing 1.7–1.8 per cent.

Key outperformers and laggards  
- M&M rallied 4 per cent, topping Nifty, following CLSA's reaffirmed 'outperform' rating with a target of Rs 3,440, indicating a 16 per cent upside.  
- Suzlon Energy hit an upper circuit, jumping five per cent after Morgan Stanley's upgrade to 'overweight', citing its business resilience and key role in India's energy transition.  
- In contrast, Honasa Consumer (Mamaearth) plunged nearly 30 per cent over two days due to weak Q2FY25 results, posting a net loss after five quarters of profit.  
- Notable gainers included Tech Mahindra, Adani Ports, and Trent, while laggards featured SBI Life, HDFC Life, and Bajaj Finserv.  

Market Commentary  
VK Vijayakumar of Geojit Financial Services noted that the market's sharp rebound offers opportunities for consolidation rather than sustained gains, given FII selling and concerns over weak earnings for FY25. Mid-small caps are vulnerable to further corrections, he added.  

Anand James of Geojit advised caution, predicting gains to remain within **23,733–23,788** unless strong cues emerge. He added that failure to stay above **23,565** could delay recovery but ruled out a significant drop today.  

Stay tuned for further updates as the markets look to maintain momentum through the session.