Markets Jump Over 1% as Oil Slides, Banks Lead Broad-based Rally

Indian equity benchmark indices staged a sharp rebound on Wednesday, supported by easing geopolitical tensions and a steep decline in crude oil prices, which lifted global risk sentiment.

The BSE Sensex surged 940.73 points or 1.22% to close at 77,958.28, while the NSE Nifty50 advanced 298.15 points or 1.24% to settle at 24,330.95, reclaiming the 24,300 mark.

The rally was broad-based, with all major sectoral indices ending in the green except FMCG. Broader markets also strengthened, with the Nifty Midcap100 rising 1.1% and the Smallcap100 gaining 0.9%.

Oil Slide, Iran Deal Hopes Drive Rally

Market sentiment improved after reports suggested that the US and Iran are nearing a preliminary agreement to end the ongoing conflict, raising hopes of stability in global energy markets.

Crude oil prices declined sharply, with Brent crude falling nearly 7% to around $102 per barrel after trading near $115 earlier this week. The easing in oil prices provided significant relief to markets and the domestic currency outlook.

Vinod Nair, Head of Research at Geojit Investments, said domestic markets rallied on risk-on sentiment driven by easing US–Iran tensions and supportive global cues. He noted that while the trend remains sensitive to headlines, lower crude prices and improved global liquidity conditions are aiding sentiment.

Banks Lead Gains on Policy Support

Banking stocks led the rally after the government approved an emergency credit guarantee programme worth ₹15,800 crore to support businesses affected by the Iran conflict.

The Nifty Bank index crossed the 56,000 mark, while the Nifty Private Bank index gained 2.37% and the Nifty PSU Bank index advanced 2.8%, reflecting strong buying interest in financials.

Nair added that gains across sectors including financials, pharma, auto and realty were partly driven by short covering and tactical positioning, although domestic policy support and infrastructure momentum remain positive factors.

Among individual stocks, Hero MotoCorp gained 2.6% after reporting better-than-expected quarterly earnings, while Mahindra & Mahindra rose 3.1%, extending its post-results rally.

Coforge surged 8.4% following a sharp jump in quarterly profit, whereas Larsen & Toubro declined 3.4% after reporting weaker earnings.

The broader market continued to outperform, indicating sustained participation beyond frontline indices.

Volatility Eases, Technical Outlook Positive

Nilesh Jain, VP, Head of Technical and Derivative Research at Centrum Finverse, said the Nifty has broken above key resistance at 24,300 and established strong support around the 24,000 level. He added that a breakout from a symmetrical triangle pattern suggests a positive shift in the short-term trend, with potential upside towards the 24,500 level.

Investor confidence improved as the India VIX declined more than 5% to around 17, signalling reduced market volatility.