Indian stocks closed slightly higher on Thursday with support from upbeat earnings from auto manufacturers, offsetting the impact of higher energy prices and volatile bond markets. The S&P/BSE Sensex added 0.4% to 77,928 and the NSE Nifty 50 rose 0.3% to 24,317. Mahindra & Mahindra led the gains with a 2.2% jump after delivering strong results in the June quarter. Auto stocks followed to consolidate the sector's upswing, with Maruti Suzuki and Tata Motors both adding 1.6%. In turn, tech shares were mixed following their outperformance yesterday, with Eternal and TCS dropping slightly while Infosys closed flat. Domestic and foreign borrowing costs rose in the longer-end of the curve after the Fed held interest rates but featured dissenters on the hawkish side, while a controversial press conference by Chairman Warsh lifted yields on inflation-protected bonds.