By Vivek Kumar M

Indian shares rose in early trade on Thursday as a drop in crude oil prices on U.S.-Iran talks and a rebound in information technology stocks after four sessions of losses aided investor sentiment.

The benchmark Nifty 50 NSE:NIFTY rose 0.34% to 24,088.55, while the BSE Sensex BSE:SENSEX added 0.36% to 77,197.33, as of 10:14 a.m. IST.

Twelve of the 16 major sectors advanced. The broader small-caps NSE:CNXSMALLCAP and mid-caps NSE:CNXMIDCAP rose 0.7% and 0.5%, respectively.

Brent crude futures ICEEUR:BRN1! dropped below $71 per barrel after Qatar said Iran and the U.S. made "positive progress" in indirect talks that concluded on Wednesday.

"Lower crude oil prices will further strengthen India's macros and help in achieving higher growth while keeping inflation in check," said V.K. Vijayakumar, chief investment strategist at Geojit Investments.

The AI trade in South Korea is weakening, as indicated by the Kospi index's 11.5% correction last month, Vijayakumar added, flagging that this is a positive development for non-AI markets like India.

Negotiators from Iran and the U.S. spent two days in Doha discussing maritime traffic in the Strait of Hormuz and unfreezing Iran's funds in indirect talks mediated by Qatar, Reuters reported, citing sources.

The next meeting will take place after funeral processions for Iran's late Supreme Leader Ayatollah Ali Khamenei, who is due to be buried on July 9, Qatar's Foreign Ministry said.

The IT index NSE:CNXIT rose 3.7%, snapping a four session losing streak where it fell 6.5% due to concerns over the U.S. Federal Reserve hiking interest rates later this year.

India's top two software exporters Tata Consultancy Services NSE:TCS and Infosys NSE:INFY1! gained 3% and 4.8%, respectively.

Benchmark heavyweights HDFC Bank NSE:HDFCBANK and ICICI Bank NSE:ICICIBANK added 0.7% and 0.8%, respectively, supporting index gains.

Shares of some mid-sized banks rose after they reported strong growth in advances for the June quarter. Dhanlaxmi Bank NSE:DHANBANK and Tamilnad Mercantile Bank NSE:TMB jumped 6.3% and 3.5%, respectively.