Indian equity markets came roaring back on Wednesday morning, as both the Sensex and Nifty staged a massive relief rally on the back of softening tensions in West Asia. The 30-share BSE Sensex surged by nearly 1,900 points in early trade to reach 73,847.08, while the broader NSE Nifty climbed 572.55 points, comfortably crossing the 22,900 mark. The rebound follows a bleak Monday, where the indices had tumbled over 2 per cent before closing for the Mahavir Jayanti holiday on Tuesday.
The change in mood appears to be driven by a rare glimmer of diplomatic hope. Analysts noted that recent statements from Iranian authorities, including the President’s apparent openness to ending the conflict and confirmed back-channel communication with the US, have eased the "war premium" that had been choking global markets. According to V.K. Vijayakumar of Geojit Investments, this shift is already being felt in the cooling of US bond yields and a more stable outlook for crude prices, even though Brent crude continues to hover around the $105 per barrel mark.
The optimism was infectious across Asian boardrooms, with Japan’s Nikkei climbing over 4 per cent and South Korea’s Kospi jumping a staggering 7 per cent. This followed a stellar performance on Wall Street on Tuesday night, where the Nasdaq led the charge with a 3.83 per cent gain as investors pivoted back into riskier assets.
Closer to home, the buying was universal; every single one of the 30 Sensex firms traded in the green during the opening hour. High-profile gainers included Trent, Adani Ports, and InterGlobe Aviation, alongside heavyweights like Larsen & Toubro. While Foreign Institutional Investors (FIIs) were heavy sellers on Monday — offloading over ₹11,000 crore in equities — domestic institutions have stepped in to provide a significant cushion, purchasing nearly ₹15,000 crore worth of shares. For now, the "fear factor" that dominated the final week of March seems to be giving way to a cautious but decisive recovery.
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