Mumbai (Maharashtra)

Indian equity markets witnessed a sharp rally on Wednesday, with both benchmark indices surging nearly four per cent, driven by positive sentiment following the ceasefire announcement in the West Asia conflict.

The Nifty 50 index jumped to 23,997.35, gaining 873.70 points or 3.78 per cent, while the BSE Sensex surged to 77,562.90, rising by 2,946.32 points or 3.95 per cent at the close.

Market experts attributed the rally to easing geopolitical concerns and improved investor sentiment.

Vinod Nair, Head of Research at Geojit Investments Limited, said the interim ceasefire is being viewed as a step towards broader regional stability.

"The reopening of the Strait of Hormuz has pushed oil prices below USD 100 and reduced downside risks to FY27 earnings growth. The improvement in sentiment has also led to a decline in the 10-year bond yield and strengthening of the rupee," he said.

He added that the Reserve Bank of India's decision to maintain status quo on interest rates has further supported financial stocks, while investors are focusing on reasonable valuations and stable medium-term earnings outlook.

Sector-wise, the rally was broad-based with almost all indices closing in the green. Nifty Auto surged more than 6 per cent, while Nifty Realty rallied 6.75 per cent. Nifty PSU Bank gained 5.46 per cent, Nifty Consumer Durables rose 5.23 per cent, and Nifty Media advanced 2.96 per cent. Nifty IT also recorded marginal gains of 0.52 per cent.

In the commodities market, Brent crude prices continued to decline and were trading at around USD 94 per barrel at the time of filing this report, reflecting easing supply concerns.

Meanwhile, precious metals saw an uptick, with gold prices rising to Rs 1,53,160 per 10 grams for 24 karats. Silver prices also surged by 5 per cent to Rs 2,44,498 per kg.

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Asian markets mirrored the positive trend, with strong gains across major indices. Japan's Nikkei 225 surged more than 5 per cent to 56,444, South Korea's KOSPI rose 6.43 per cent to 5,872, and Taiwan's weighted index climbed more than 4 per cent to 34,761.

Hong Kong's Hang Seng index gained more than 3 per cent to 25,935, while Singapore's Straits Times index was up by 0.77 per cent to 4,996.