Sensex jumps 1,300 points, Nifty gains 400 on strong opening
Crude falls below $95, US-Iran talks boost global market sentiment
IT, banks, metals lead rally; rupee strengthens 20 paise
Sensex, Nifty Soar as Oil Drops and Iran Talks Boost Market Sentiment
Broad-based gains lift Indian equities and rupee as easing oil prices and upbeat global markets fuel risk-on sentiment
Summary
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Benchmark indices BSE Sensex and Nifty 50 opened sharply higher on Wednesday, tracking positive global cues and easing crude oil prices amid renewed hopes of US-Iran peace talks.
At the open, the Sensex surged over 1,300 points, while the Nifty gained around 400 points, signalling strong bullish sentiment after recent volatility driven by geopolitical tensions.
The rally comes on the back of reports suggesting a possible second round of talks between the US and Iran, which helped calm investor nerves after earlier negotiations failed to yield a breakthrough.
Sectorally, gains were broad-based, with IT, financial services, metals and PSU banks leading the rally. Auto and FMCG stocks also traded higher, while pharma and healthcare lagged slightly. Midcaps and banking stocks provided additional support, reflecting a strong risk-on mood in the market.
Among Sensex constituents, almost all stocks traded in the green, with InterGlobe Aviation emerging as the top gainer, rising around 4%. Other major gainers included UltraTech Cement, HCLTech, Infosys, Bajaj Finance and Larsen & Toubro.
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The Indian rupee also strengthened, opening 20 paise higher at 93.18 against the US dollar, compared with Monday's close of 93.38.
Oil Falls, Global Markets Rally
Crude oil prices declined sharply, with Brent crude falling below the $95 per barrel mark, boosting sentiment across global markets. Brent futures dropped nearly 0.4% to around $94 per barrel, extending losses after a nearly 5% decline in the previous session. US West Texas Intermediate crude also fell more than 1% to around $90 per barrel.
The fall in oil prices follows comments from US President Donald Trump indicating that talks with Iran could resume in Pakistan within the next two days, raising hopes of de-escalation in the region.
Global markets reacted positively to the developments. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5% to a six-week high, while Japan’s Nikkei gained about 1% and South Korea's Kospi surged 3%.
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Overnight, US markets also closed higher, with the Nasdaq rising 2% and the S&P 500 gaining 1.2%, nearing record levels.