Markets closed higher for the second consecutive session on Wednesday, while emerged as a standout performer, surging nearly 4 per cent on to $4,556 per ounce, as diplomatic signals between the US and Iran eased fears of a prolonged Middle East conflict.
The gained 1,205 points or 1.63 per cent to close at 75,273.45, while the advanced 394 points or 1.72 per cent to settle at 23,306.45. The broader market outperformed blue-chips, with the Nifty Midcap 100 rising 2.3 per cent and the Smallcap 100 climbing 2.6 per cent.
The rally was broad-based, with all sectoral indices closing in the green. Consumer Durables led gains at 3.5 per cent, followed by Realty and PSU Banks, each rising over 2.5 per cent.
Among individual stocks, Shriram Finance topped the Nifty 50 gainers at 5.8 per cent, followed by Titan at 4.6 per cent and Grasim at 4.2 per cent. Tech Mahindra was the day’s biggest loser, declining 2 per cent, followed by Powergrid and TCS.
Vishnu Kant Upadhyay, AVP, Research Advisory at Master Capital Services Limited mentioned, “Sectorally, the pressure was most visible in downstream oil refiners, paint companies, tyre manufacturers, and aviation stocks, as elevated crude prices could lead to margin compression.”
The trigger for Wednesday’s optimism was Iran’s signal at the UN allowing non-hostile vessels through the Strait of Hormuz, alongside unconfirmed reports of ceasefire negotiations. fell sharply by around 5 per cent to the $94–$98 range.
“The easing in oil prices provided additional support to equities by alleviating near-term inflation and supply concerns,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
Gold and silver mirrored the risk-on mood. Silver gained close to 4.8 per cent to $73.12 per ounce. “Reports suggesting the US is exploring ways to conclude the conflict with Iran boosted safe-haven demand, amplifying the upside momentum in bullion,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
The India VIX dropped 5.3 per cent to 24.5 from 27.17, though it remains elevated. European and Asian markets also gained in the 1–2 per cent range, reflecting the improved global tone. However, FII selling persisted.
“Sectoral participation remained broadly positive…however, the volatility index, India VIX, remained elevated, indicating continued caution amid persistent FII outflows and weakness in the rupee,” said Ajit Mishra, SVP Research at Religare Broking.
, near record lows, keeping import costs and inflation concerns alive.
The ₹150–160 crore fixed-deposit fraud linked to municipal accounts involving Kotak Mahindra Bank drew attention but was treated by markets as an isolated governance issue.
Technically, Nifty faces immediate resistance in the 23,400–23,450 zone; a move above it could extend the rally toward 23,600 and 23,800.
Bank Nifty, which closed at 53,708 up 2.1 per cent, faces resistance at 54,200–54,300. Vinay Rajani, Senior Technical Research Analyst at HDFC Securities, noted that “Nifty has reclaimed its 10-day SMA for the first time since the drawdown triggered by West Asia war tensions,” with the daily RSI showing positive divergence.
With markets closed Thursday for Ram Navami, participants will watch US-Iran developments closely. Friday’s session will likely reflect any fresh diplomatic cues, with crude oil movement, rupee stability, and RBI action remaining key variables to track.