Equity benchmarks rallied nearly 2 per cent on Wednesday, as the Sensex and Nifty rose in line with global markets amid optimism over a possible de-escalation of the West Asia conflict.
Marking a positive start to the new financial year, the 30-share BSE Sensex climbed 1,186.77 points or 1.65 per cent to close at 73,134.32. During intraday trade, it had jumped 2,017.03 points or 2.80 per cent to touch 73,964.58.
Breaking a two-session losing streak, the 50-share NSE Nifty advanced 348 points or 1.56 per cent to settle at 22,679.40. Lower crude oil prices also supported investor sentiment.
Among the Sensex constituents, Trent, InterGlobe Aviation, Adani Ports, Bharat Electronics, State Bank of India and Eternal were the top gainers.
On the other hand, NTPC, Sun Pharma, Power Grid, UltraTech Cement and Bharti Airtel ended as laggards.
In Asia, markets in South Korea, Japan, China and Hong Kong closed sharply higher. South Korea’s Kospi soared 8.44 per cent, while Japan’s Nikkei 225 gained 5.24 per cent. European markets were also trading in positive territory.
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“Indian equity markets began the new financial year on an upbeat note, supported by renewed optimism over a potential de-escalation in the Middle East conflict and easing concerns around energy supply disruptions,” said Ponmudi R, CEO of Enrich Money, a trading and wealth-tech platform.
He added that remarks by US President Donald Trump suggesting a possible withdrawal from Iran within the next two to three weeks, regardless of a deal, acted as a trigger for global markets, sparking a broad-based rally in risk assets.
On the sectoral front, BSE Services jumped 4.99 per cent, followed by PSU Bank (3.66 per cent), Industrials (3.40 per cent), Capital Goods (3.29 per cent), MidSmall Private Banks Quality Tilt (3.07 per cent), Consumer Discretionary (2.79 per cent), Commodities (2.72 per cent) and IT (2.40 per cent). BSE Healthcare was the only sector to close in the red.
A total of 3,828 stocks advanced on the BSE, while 508 declined and 101 remained unchanged. US markets had ended sharply higher on Tuesday, with the Nasdaq Composite rising 3.83 per cent, the S&P 500 gaining 2.91 per cent and the Dow Jones Industrial Average advancing 2.49 per cent.
“Indian equities opened FY27 on a firm footing, driven by improved risk appetite after US President Donald Trump’s comments, hinting at a possible resolution of the West Asia tensions,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Meanwhile, Brent crude, the global oil benchmark, slipped 0.22 per cent to USD 103.7 per barrel. Markets were closed on Tuesday on account of Shri Mahavir Jayanti. Foreign Institutional Investors (FIIs) sold equities worth Rs 11,163.06 crore on Monday, as per exchange data, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 14,894.72 crore.
In the previous session on Monday, the Sensex had plunged 1,635.67 points or 2.22 per cent to end at 71,947.55, while the Nifty dropped 488.20 points or 2.14 per cent to close at 22,331.40.
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