Equity benchmark indices BSE Sensex and NSE Nifty surged nearly 4 per cent on Wednesday, driven by a strong rally in global markets and a sharp drop in crude oil prices after the United States and Iran announced a two-week ceasefire.
Market sentiment was further boosted by the Reserve Bank of India maintaining its policy repo rate, along with broad-based buying across sectors and a stronger rupee against the US dollar, traders said.
Extending gains for the fifth straight session, the 30-share Sensex jumped 2,946.32 points or 3.95 per cent to close at 77,562.90, marking its best single-day performance in five years. During intra-day trade, it surged 3,018.96 points or 4 per cent to reach 77,635.54.
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On the broader market, 3,859 stocks advanced, while 537 declined and 101 remained unchanged on the BSE. The 50-share Nifty rallied 873.70 points or 3.78 per cent to settle at 23,997.35—its strongest single-day gain in 11 months. It touched an intra-day high of 24,025.15, rising 901.5 points or 3.89 per cent.
According to Ajit Mishra, the rally was largely driven by improved global sentiment following the ceasefire announcement, which cooled crude oil prices and eased concerns over inflation and global growth.
He added that the RBI’s decision to maintain a neutral stance on interest rates was seen as supportive for equities. Among Sensex constituents, InterGlobe Aviation led the gains with an 8.22 per cent jump. Other major gainers included Larsen & Toubro, Bajaj Finance, Mahindra & Mahindra, Axis Bank and Maruti Suzuki.
On the flip side, Tech Mahindra, Sun Pharmaceutical Industries, and Power Grid Corporation of India were among the laggards. All sectoral indices ended in positive territory. The Realty index surged 6.76 per cent, followed by Auto (6.55 per cent), BSE PSU Bank (5.79 per cent), Bankex (5.72 per cent), Private Banks (5.62 per cent), Financial Services (5.48 per cent), Services (5.22 per cent), Consumer Discretionary (5.11 per cent), and Industrials (4.87 per cent).
Broader markets also saw strong gains, with the BSE MidCap Select index rising 4.93 per cent and the SmallCap Select index climbing 4.01 per cent. Global oil benchmark Brent crude fell sharply by 13.89 per cent to USD 94.09 per barrel. The Indian rupee appreciated by 47 paise to close at 92.59 (provisional) against the US dollar.
Across Asia, markets rallied strongly, with South Korea’s Kospi jumping 6.87 per cent and Japan’s Nikkei 225 gaining 5.39 per cent. China’s SSE Composite and Hong Kong’s Hang Seng also recorded solid gains, while European markets traded significantly higher. US markets, however, ended flat on Tuesday.
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