Markets surged at the opening bell on Wednesday, with the BSE Sensex jumping 2,550.66 points or 3.42 per cent to 77,167.24, after opening at 77,290.63 against its previous close of 74,616.58. The NSE Nifty 50 soared 756.90 points or 3.27 per cent to 23,880.55, opening at 23,855.15 compared to its previous close of 23,123.65, as of 9.16 AM.
The trigger: a two-week ceasefire announced by US President Donald Trump, suspending military strikes against Iran just hours before his Tuesday deadline. Iran agreed to allow safe navigation through the Strait of Hormuz, a critical chokepoint for global energy trade. Pakistan’s last-minute diplomatic effort was credited with brokering the pause. “The two-week ceasefire between the US and Iran has dramatically altered the near-term market scenario,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
The ceasefire immediately deflated crude oil prices. WTI crude tumbled as much as 17 per cent to below $100 per barrel after having surged past $115 following reports of strikes on Iran’s Kharg Island, which accounts for roughly 90 per cent of Iran’s oil exports. Brent crude fell to around $95. For India, a major oil importer, this is significant. “…the crash in Brent crude to $95 following the ceasefire will again turn the market bullish,” Vijayakumar added.
US equity futures surged after a muted regular session where the S&P 500 gained just 0.1 per cent and the Dow fell 0.2 per cent. Post-ceasefire, S&P 500 futures jumped 2.2 per cent to 6,804, Nasdaq futures rallied 2.7 per cent, and Dow futures surged 2 per cent. Asian markets, including Japan and South Korea, also posted sharp gains. GIFT Nifty rebounded to the 23,800 zone, signalling a strong gap-up. “…today’s gap-up is largely sentiment-driven, supported by easing global risks and improving technical structure,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
On the Nifty 50, aviation and infrastructure stocks led the charge. IndiGo (InterGlobe Aviation) surged 9.59 per cent, opening at ₹4,600 and trading at ₹4,678, its highest in the session touching ₹4,695.60, against a previous close of ₹4,268.80. Larsen & Toubro gained 7.82 per cent, trading at ₹4,014.60 against a previous close of ₹3,723.30. Shriram Finance rose 6.62 per cent to ₹992.25 from ₹930.65. Adani Ports advanced 6.36 per cent to ₹1,468.90 from ₹1,381. Bajaj Finance climbed 5.95 per cent to ₹906 from ₹855.10.
Energy counters were the only drag. Coal India fell 3.38 per cent to ₹447.35 from ₹463, while ONGC declined 3.21 per cent to ₹277.45 from ₹286.65, as lower crude prices weighed on upstream oil producers.
Sectorally, IT stocks continued their leadership role, with Wipro drawing attention following a major deal announcement. Private banks also saw buying interest. Beaten-down financials, aviation, capital goods companies with Gulf exposure, paints, and adhesives are seen as key beneficiaries of the ceasefire. “…beaten-down financials have the potential to stage a dramatic recovery,” said Vijayakumar.
The RBI’s Monetary Policy Committee is set to announce its rate decision at 10 AM today, with markets widely expecting the repo rate to be held at 5.25 per cent with a neutral stance. “…the upside risk to inflation and the downside risk to growth can now be managed well,” Vijayakumar noted, adding that a stronger rupee could even prompt foreign portfolio investors to pause or reverse their sustained selling.
On the institutional front, FIIs were net sellers of approximately ₹8,692 crore in the previous session, while DIIs countered with inflows of around ₹7,980 crore. India VIX stood at 24.6950, reflecting elevated but slightly cooling volatility. “…volatility is likely to persist amid ongoing geopolitical concerns and continued foreign fund outflows,” cautioned Aakash Shah, Technical Research Analyst at Choice Equity Broking.
In other key developments, Titan reported strong jewellery segment growth, Aurobindo Pharma received a USFDA nod for a diabetes drug, Zepto is awaiting IPO approval, and Muthoot Finance raised its outlook while announcing a dividend record date. Gold climbed 2.5 per cent to $4,821 per ounce while silver surged 4.7 per cent to $77 per ounce globally, with precious metals benefiting from dollar softness.
The Nifty has now closed above its 10-day EMA for the first time since the US-Iran-Israel conflict erupted, with the short-term trend showing signs of reversal. Key resistance lies at 23,800–24,000, with support at 23,000.