Indian Markets Rally Over 3% As Iran Ceasefire Boosts Investor Confidence

Indian stock markets witnessed a strong rally on Wednesday as equity benchmarks surged over 3 per cent following the announcement of a two-week ceasefire in the US-Iran conflict.

Sensex climbed 3.71 per cent, or 2,775 points, to 77,392, while Nifty rose 3.52 per cent, or 815 points, reaching 23,938 in early trade amid broad-based buying.

All major sectors traded in the green, with real estate, auto, banking, IT, and metal stocks rising sharply, some by as much as 6 per cent.

Smallcap and midcap indices outperformed, while largecap stocks also gained, and India VIX dropped 19 per cent, reflecting reduced volatility.

Traders and investors are keeping an eye on the Reserve Bank of India’s Monetary Policy Committee outcome later in the day.

On Tuesday, FIIs sold around Rs 8,692 crore while DIIs bought Rs 7,980 crore. Analysts expect continued volatility and advise buy-on-dips, focusing on IT, banking, and oil-sensitive stocks.

Trump called it a double-sided ceasefire, contingent on Iran fully reopening the Strait of Hormuz for two weeks.

Global markets reflected optimism, with Asian indices rising sharply: Nikkei advanced 5.60 per cent, Hang Seng climbed 3.08 per cent, and KOSPI gained 6.36 per cent by mid-morning.

Wall Street ended mostly flat, with the S&P 500 up 0.08 per cent and the Nasdaq slightly down 0.03 per cent.

Oil prices fell substantially, easing inflation concerns and contributing to positive sentiment.

Brent crude futures dropped 15.91 per cent to $91.88, while US WTI crude fell 20 per cent to $91.05, hitting intraday lows and reflecting reduced supply-related anxiety in global markets.

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