India’s benchmark stock indices opened sharply higher on Wednesday, driven by improved global sentiment after a ceasefire between the United States and Iran eased geopolitical tensions.
The BSE Sensex rose 2,775.73 points, or 3.71%, to reach 77,392.31 in early trade. Similarly, the NSE Nifty gained 815.2 points, or 3.52%, climbing to 23,938.85.
Market sentiment improved significantly after both nations agreed to a two-week ceasefire. The development helped reduce concerns over disruptions in global energy supplies, particularly through the Strait of Hormuz, a key route for oil transportation.
A sharp decline in crude oil prices further supported the rally. Brent crude oil dropped by over 13% to around $94.80 per barrel. Lower oil prices are generally positive for India, as they can help ease inflation and support currency stability.
Among Sensex-listed companies, InterGlobe Aviation recorded the highest gains, rising nearly 10%. Other major gainers included Larsen & Toubro, Bajaj Finance, Adani Ports, Bajaj Finserv, and Mahindra & Mahindra. Tech Mahindra was the only major stock trading lower.
Asian markets also reflected the positive momentum. Indices such as Japan’s Nikkei 225, South Korea’s Kospi, China’s SSE Composite, and Hong Kong’s Hang Seng Index were trading higher.
Market experts noted that the ceasefire has significantly improved short-term outlook. The reopening of the Strait of Hormuz is expected to stabilize oil supply, encouraging investor confidence.
Investors are also closely watching the upcoming decision by the Monetary Policy Committee led by Reserve Bank Governor Sanjay Malhotra, which may further influence market direction.
On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth ₹8,692.11 crore on Tuesday, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹7,979.50 crore.
The strong market opening reflects renewed optimism, though analysts advise caution as geopolitical developments and policy decisions continue to shape investor sentiment.
