Equity benchmarks opened higher on Wednesday, buoyed by easing crude oil prices and improving global sentiment after US Secretary of State Marco Rubio declared that “Operation Epic Fury is concluded,” signalling a potential de-escalation in the Middle East conflict that has rattled markets for weeks.
The Sensex, which closed at 77,017.79 on Tuesday, opened at 77,424.36 and was trading at 77,571.51, up 553.72 points or 0.72 per cent, as of 9.16 AM. The Nifty 50, which had closed at 24,032.80, opened at 24,171.00 and was at 24,206.65, up 173.85 points or 0.72 per cent at the same time.
The rally came on the back of Wall Street’s record-setting session overnight. The S&P 500 gained 0.8 per cent, the Nasdaq rose 1 per cent, and the Dow Jones climbed 0.7 per cent, all closing at fresh highs, driven by strong technology earnings and a modest pullback in crude prices. Brent crude fell to around $108 per barrel on Wednesday morning, down 1.67 per cent, while WTI crude slipped to $100.43, down 1.80 per cent. On India’s Multi Commodity Exchange, July Brent futures were trading at ₹9,546, down 1.57 per cent from the previous close of ₹9,698.
Among Asian peers, South Korea’s benchmark index surged to record levels, reflecting a broader risk-on mood across the region. GIFT Nifty was trading at 24,318, up around 208 points ahead of the open, signalling strong early momentum.
IndiGo parent InterGlobe Aviation (INDIGO) was the top gainer on the Nifty 50, rising 2.16 per cent to ₹4,330.00 from a previous close of ₹4,238.40, on volumes of 58,056 shares. Mahindra & Mahindra (M&M) climbed 2.06 per cent to ₹3,276.80 against a previous close of ₹3,210.80, ahead of its quarterly earnings announcement, with 4,02,541 shares changing hands worth ₹13,176.50 lakhs.
Shriram Finance advanced 2.03 per cent to ₹984.00 from ₹964.40, while Bajaj Finance rose 1.83 per cent to ₹976.10 against a previous close of ₹958.60 on volumes of 2,68,683 shares valued at ₹2,613.13 lakhs. Tata Motors gained 1.76 per cent, trading at ₹346.15 against its previous close of ₹340.15.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, cautioned investors to read the ceasefire news carefully. “The market will be careful while responding to the latest declaration by Secretary of State Marco Rubio that ‘Operation Epic Fury is concluded’,” he said, adding that “declarations by leaders of US and Iran, particularly by President Trump, had lost all credibility due to their notorious inconsistency.”
On valuations, Vijayakumar flagged a divergence in the market. “Nifty is now trading around 20 times TTM earnings while Nifty Midcap and Nifty Smallcap indexes are trading at 35 times and 30 times respectively,” he noted. “When the AI trade ends and FIIs stop selling/start buying in India, largecaps will outperform.”
Larsen & Toubro was the sharpest loser, falling 3.19 per cent to ₹3,925.00 from a previous close of ₹4,054.50 on heavy volumes of 5,72,300 shares worth ₹22,526.93 lakhs, ahead of its results. ONGC slipped 0.36 per cent to ₹288.90 from ₹289.95. Hindustan Unilever edged down 0.11 per cent to ₹2,324.90 against ₹2,327.40. Power Grid also dipped marginally by 0.11 per cent to ₹319.10 from ₹319.45.
The Indian rupee continues to hover near the ₹95 per dollar mark, a level that analysts say could trigger foreign institutional outflows if it weakens further. FIIs turned net sellers in the previous session, while DIIs continued to provide a floor.
Vikram Kasat, Head Advisory at PL Capital, put the day’s sentiment succinctly: “While there has been no real uptick in traffic through the Strait of Hormuz, the fact that the cease-fire remains in effect was enough to temper oil prices.”
Aakash Shah, Technical Research Analyst at Choice Equity Broking, noted that Nifty has “hovered around its short- and medium-term moving averages for multiple sessions, indicating lack of strong directional conviction.” He flagged 24,000 as a “crucial pivot,” noting that “a sustained move above 24,350 may trigger a rally toward 24,600.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified 24,210/77,500 as the main resistance zone for bulls, adding that “a close above 24,300/77,800 would be positive for the market as it could take the index towards 24,600/78,700.”
Rajesh Palviya, Head of Research at Axis Direct, highlighted the global commodity picture, noting gold is near $4,570 an ounce, silver around $72.6, and copper at $5.85 per pound.
Globally, the Middle East conflict continues to squeeze energy supplies across Asia, with Japan increasing expensive US oil imports and Pakistan scrambling for alternative LNG supplies. Eurozone and UK central banks remain cautious with rate cuts delayed, while South Korea has seen inflation surge to a near two-year high from energy price shocks. Ponmudi R, CEO of Enrich Money, summed up the underlying uncertainty: “The broader blockade dynamics remain unresolved, keeping energy markets on edge.”