Benchmark stock indices BSE Sensex and Nifty 50 surged nearly 1 per cent on Wednesday, supported by softer crude oil prices and optimism over possible diplomatic engagement between the US and Iran.
The 30-share Sensex jumped 1,263.67 points, or 1.64 per cent, to close at 78,111.24. During intraday trade, it had rallied 1,422.85 points, or 1.85 per cent, to touch 78,270.42. The 50-share Nifty also advanced 388.65 points, or 1.63 per cent, to settle at 24,231.30.
Among Sensex constituents, major gainers included InterGlobe Aviation, Eternal, Power Grid, Tech Mahindra, Tata Consultancy Services and Larsen & Toubro. On the other hand, Bharti Airtel, ICICI Bank and Axis Bank ended as laggards.
Global oil benchmark Brent crude was trading at USD 95.74 per barrel, up 1.4 per cent, but remained below the USD 100 mark, offering relief to markets.
Investor sentiment was also influenced by comments from Donald Trump, who said tensions with Iran were ‘close to over’ and hinted at a possible second round of talks. According to US media reports, discussions could take place in Islamabad in the coming days.
Market experts said easing geopolitical concerns played a key role in the rally. Hariprasad K, Research Analyst and Founder of Livelong Wealth, noted that improving prospects of US–Iran dialogue and declining crude prices helped revive risk appetite.
“For an import-dependent economy like India, lower oil prices ease inflation pressures, support the currency, and improve corporate margins,” he said.
Asian markets ended higher, with gains seen in South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng indices. European markets, however, traded on a mixed note.
US markets had closed in positive territory on Tuesday. The Nasdaq Composite rose 1.96 per cent, the S&P 500 gained 1.18 per cent, and the Dow Jones Industrial Average advanced 0.66 per cent.
Vinod Nair, Head of Research at Geojit Investments Limited, said optimism around potential US–Iran negotiations helped drive oil prices lower, outweighing concerns over supply disruptions.
Stock markets were closed on Tuesday on account of Ambedkar Jayanti.Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹1,983.18 crore on Monday, while Domestic Institutional Investors (DIIs) purchased shares worth ₹2,432.30 crore.
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