New Delhi, June 26 -- Indian benchmark indices rose to reclaim levels last seen nine months ago, as investors cheered lower oil prices, a weaker dollar, and strong domestic flows back home. Market experts believe the combination bodes well for the bulls in the near term at least.

As a ceasefire in West Asia after 11 days of conflict took hold, markets bet that the worst of the disruption was behind. The Nifty closed 1.21% or 304.25 points higher at 25,549, while the Sensex closed 1.21% or 1,000 points up at 83,775.87. Thursday's closing was the highest since 1 October when the Nifty traded at 25,796.9 and the Sensex at 84,266.29.

The gains were led by HDFC Bank , Reliance Industries, Bharti Airtel, ICICI Bank and Bajaj Finance, which to...