Benchmark indices rebounded strongly on Wednesday, with the BSE Sensex surging 940 points and the Nifty NSE 50 closing above the 24,300 mark. The rally followed a sharp drop in crude oil prices after Donald Trump signaled progress in negotiations with Iran aimed at ending ongoing tensions.
Driven by strong buying in the latter half of the session, the 30-share Sensex jumped 940.73 points, or 1.22 per cent, to settle at 77,958.52. During intraday trade, it climbed as much as 1,004.99 points, or 1.30 per cent, reaching a high of 78,022.78. Meanwhile, the 50-share Nifty advanced 298.15 points, or 1.24 per cent, to close at 24,330.95.
A broadly positive trend across global markets further supported domestic equities. Among Sensex constituents, InterGlobe Aviation emerged as the top gainer, soaring 6.6 per cent, aided by falling crude prices and the announcement of a credit line for airlines impacted by the West Asia crisis.
Other notable gainers included Trent Ltd, which rose 3.91 per cent; Asian Paints, up 3.56 per cent; State Bank of India, gaining 3.38 per cent; HDFC Bank, up 3.11 per cent; and Eternal Ltd, which added 2.98 per cent. On the downside, Reliance Industries was the biggest laggard, declining 1.8 per cent. Larsen & Toubro, Power Grid Corporation of India, and NTPC Limited also ended lower.
Broader markets mirrored the upbeat sentiment, with the BSE SmallCap Select index rising 2.25 per cent and the MidCap Select index gaining 2.10 per cent. Sectorally, banking, financial services and realty stocks led the rally, while energy and FMCG sectors remained relatively subdued.
Market experts attributed the surge primarily to global developments. “The key trigger was optimism around a potential US–Iran peace deal, which led to a sharp fall in crude oil prices, offering immediate relief to an import-dependent economy like India,” said Hariprasad K of Livelong Wealth.
Additionally, supportive domestic measures, including a government-backed credit guarantee scheme for businesses, boosted banking stocks, noted Ajit Mishra of Religare Broking.
Also read: Stock markets recover on US-Iran deal optimism
In a post on Truth Social, Trump announced that ‘Project Freedom’—a mission to escort ships through the Strait of Hormuz—would be temporarily paused amid progress toward a possible agreement with Iran. The operation had been launched to assist vessels stranded due to disruptions in the region.
Meanwhile, Marco Rubio confirmed that ‘Operation Epic Fury’, initiated on February 28, had concluded successfully, stating that the United States preferred a diplomatic resolution going forward.
Reflecting the easing geopolitical concerns, Brent crude, the global oil benchmark, dropped sharply by 8 per cent to USD 101.1 per barrel. “Indian equity markets ended on a strong note as improving global sentiment and falling energy prices provided the momentum. After early weakness, the Nifty staged a robust recovery in the second half, closing firmly in positive territory,” said Ponmudi R, CEO of Enrich Money.
Sectoral indices showed broad-based gains, with telecom rising 2.94 per cent, services 2.89 per cent, PSU banks 2.81 per cent, realty 2.76 per cent, Bankex 2.64 per cent, private banks 2.51 per cent, financial services 2.47 per cent, and healthcare 1.99 per cent. However, energy, FMCG, utilities, and power stocks lagged. Market breadth remained positive, with 2,862 stocks advancing, 1,365 declining, and 167 remaining unchanged on the BSE.
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