Indian equity markets opened sharply higher on Wednesday, with benchmark indices Sensex and Nifty rising over 2.5 percent each as improving sentiment—driven by hopes of an early end to the Iran–US–Israel conflict—boosted investor confidence.
The benchmark indices extended their rally on Wednesday, with the Sensex surging nearly 2,000 points, or 2.7 percent, to an intraday high of 73,918. The Nifty 50 also climbed over 600 points, or 2.7 percent, to touch 22,938. Broader markets outperformed, with BSE midcap and smallcap indices rising up to 4 percent.
The rally added about Rs 13 lakh crore to investor wealth, as the total market capitalisation of BSE-listed firms jumped to Rs 425 lakh crore from Rs 412 lakh crore in the previous session.
Why is the market rising?
1. Hopes of de-escalation in West Asia
Investor
sentiment improved on signs that the US-Iran conflict could be nearing an end. Reports suggest that US President Donald Trump indicated Washington may halt military operations within two to three weeks, without insisting on a prior agreement with Tehran.
The conflict, which began on February 28, had pushed crude oil prices to multi-year highs, raising concerns over inflation and global growth. However, recent signals from Iranian leadership have hinted at a possible de-escalation.
VK Vijayakumar of Geojit Investments noted that markets may begin pricing in an early resolution even before any formal announcement.
Positive global cues
Global market strength also supported the rally. South Korea’s Kospi surged over 7 percent, while Japan’s Nikkei and Taiwan’s markets gained around 4 percent each amid easing geopolitical risks and better macroeconomic data.
Overnight, US markets rallied sharply, with the Nasdaq jumping 4 percent and the S&P 500 rising 3 percent on hopes of a cooling conflict.
Weak dollar, easing bond yields
The US dollar index slipped below 100, while the US 10-year bond yield eased to around 4.29 percent. Lower yields and a weaker dollar typically support emerging markets like India by improving the outlook for foreign portfolio inflows.
Valuation-driven buying
The recent correction has made valuations more attractive. The Nifty had declined 11.3 percent in March, marking its fourth straight month of losses.
With blue-chip stocks now trading closer to long-term averages, investors appear to be engaging in value buying amid improving sentiment.
Technical breakout
From a technical perspective, the Nifty has broken past a key resistance zone of 22,700–22,800 and reclaimed the 22,900 level.
Analysts say immediate support lies in the 22,150–22,200 range, while resistance remains in the 22,700–22,800 zone. A sustained move above 22,770 could open the path towards 23,040–23,600, while a decisive break above 24,000 would signal a stronger bullish trend.
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