Indian equity markets staged a sharp rally on Wednesday, with benchmark indices jumping nearly 4% amid improving sentiment following the West Asia ceasefire announcement.
The Nifty 50 surged 873.70 points, or 3.78%, to close at 23,997.35, while the BSE Sensex soared 2,946.32 points, or 3.95%, to settle at 77,562.90.
Market participants attributed the rally to easing geopolitical tensions and renewed investor confidence. Vinod Nair, Head of Research at Geojit Investments Limited, said the interim ceasefire is being viewed as a step towards broader regional stability.
He noted that the reopening of the Strait of Hormuz has pushed oil prices below $100 per barrel, reducing downside risks to FY27 earnings growth.
The improved outlook also led to a decline in the 10-year bond yield and a strengthening rupee. Additionally, the Reserve Bank of India maintaining its interest rate stance provided support to financial stocks, while investors focused on reasonable valuations and stable medium-term earnings prospects.
Sectorally, the rally was broad-based, with most indices ending in the green. Auto and realty stocks led the gains, rising over 6%, followed by PSU banks, consumer durables, and media stocks. IT stocks posted marginal gains.
In commodities, Brent crude prices eased to around $94 per barrel, reflecting reduced supply concerns, while safe-haven assets saw increased demand. Gold prices rose to ₹1,53,160 per 10 grams (24 karat), and silver surged 5% to ₹2,44,498 per kg.
Asian markets mirrored the upbeat sentiment, with Japan’s Nikkei 225 jumping over 5%, South Korea’s KOSPI rising more than 6%, and Taiwan’s weighted index gaining over 4%. Hong Kong’s Hang Seng index advanced more than 3%, while Singapore’s Straits Times index posted modest gains.
