Domestic stock markets on Wednesday opened with strong gains, tracking upbeat signals from global markets amid hopes of de-escalation in the West Asia conflict.
The benchmark Nifty 50 rose 567 points, or 2.54 per cent, to open at 22,899, while the BSE Sensex surged 1,814 points, or 2.52 per cent, to 73,762.43.
All sectoral indices traded in positive territory, led by gains in banking, auto and IT stocks. Broader markets also showed strength, with midcap and smallcap indices advancing between 2 and 3 per cent.
Optimism in global markets followed remarks by US President Donald Trump, who indicated that US military action against Iran could pause within weeks.
At the same time, Iran warned of potential retaliation against major American corporations if tensions persist.
The rally comes after benchmark indices had fallen more than 10 per cent in March amid heightened geopolitical uncertainty.
Analysts advised caution despite the rebound, suggesting investors adopt a selective approach in volatile conditions. They recommended accumulating fundamentally strong stocks during corrections and initiating fresh positions only if the Nifty decisively crosses the 24,000 level, signalling sustained bullish momentum.
Auto stocks are likely to remain in focus as companies release their monthly sales data.
Foreign investors sold Rs 11,163 crore while domestic investors bought Rs 14,894 crore, supporting markets.
Globally, Wall Street was mixed, with the S&P 500 down 3% and the Nasdaq up 4%. Asian markets rose, led by Japan’s Nikkei (+4%), Hong Kong’s Hang Seng (+2%), and South Korea’s KOSPI (+6%). Brent crude hit $105.86, WTI $103.31 amid supply concerns.
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