Indian equity markets, including the Sensex and Nifty, experienced a significant surge in early trade, buoyed by global market rallies and a crucial drop in crude oil prices, all stemming from renewed optimism surrounding potential US-Iran peace talks.
Sensex and Nifty50 Rally: Key Highlights from Today’s Market
- Indian equity benchmarks Sensex and Nifty saw a substantial surge in early trading, reflecting positive global market sentiment.
- Hopes of renewed US-Iran diplomatic engagement have led to a sharp correction in crude oil prices, benefiting India as a major energy importer.
- US President Donald Trump indicated that a war with Iran is "close to over" and suggested a second round of talks could happen soon.
- All 30 Sensex firms traded in positive territory, with major gainers including InterGlobe Aviation, Infosys, and Tata Consultancy Services.
- Global markets, including those in Asia and the US, also ended in positive territory, contributing to the optimistic outlook.
Equity benchmark indices Sensex and Nifty surged in early trade on Wednesday, mirroring a rally in global markets and a drop in crude oil prices below the $100 per barrel mark, amid hopes of renewed diplomatic engagement between the US and Iran.
The 30-share BSE Sensex jumped 1,422.85 points to 78,270.42 in early trade.
The 50-share NSE Nifty climbed 438.25 points to 24,280.90.
Sector-Wise Performance and Top Gainers Today
All the 30-Sensex firms were trading in positive territory during initial trade.
InterGlobe Aviation, Infosys, Tata Consultancy Services, Eternal, Larsen & Toubro and Bajaj Finance were the major gainers.
Brent crude, the global oil benchmark, traded 0.26 per cent higher at $95.04 per barrel.
"Markets appear to be looking past immediate risks and are instead pricing in the possibility of renewed diplomatic engagement between the US and Iran.
"This change in narrative has led to a sharp correction in crude oil prices, which is a key positive for India given its dependence on energy imports," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US-Iran Diplomatic Hopes
US President Donald Trump has said that the war with Iran is "close to over", asserting that if he pulled up stakes right now, it would take Tehran 20 years to rebuild the country.
"I think it's close to over, yeah. I view it as very close to being over," Trump told Fox News in an interview that will be telecast later Wednesday.
A US media report said on Tuesday that Trump said that a second round of talks with Iran could be held in Islamabad "over the next two days".
Expert View: What Investors Should Watch Next
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
US markets ended in positive territory on Tuesday. The Nasdaq Composite jumped 1.96 per cent, the S&P 500 climbed 1.18 per cent, and the Dow Jones Industrial Average edged higher by 0.66 per cent.
"Hopes of resumption of US-Iran talks, Israel-Lebanon talks and crash in Brent crude by 10 dollars in two days augur well for the market in the near-term," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Stock markets were closed on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti.
Foreign Institutional Investors (FIIs) again offloaded equities worth Rs 1,983.18 crore on Monday after a day's breather, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,432.30 crore.
