Stock Market Soars Over 3% as Ceasefire Boosts Investor Sentiment

Mumbai — Indian equity markets saw a strong rally on Wednesday, with benchmark indices surging over 3 per cent after a temporary ceasefire in the US-Israel-Iran conflict eased global tensions.

The BSE Sensex jumped 2,775 points, or 3.71 per cent, to hit an intraday high of 77,392. Meanwhile, the Nifty 50 climbed 815 points, or 3.52 per cent, to trade at 23,938 in early session gains.

The rally was broad-based, with all sectors trading in the green. Real estate, auto, banking, and pharma stocks led the surge, rising as much as 6 per cent. Midcap and smallcap stocks outperformed, while large-cap stocks also posted solid gains. At the same time, market volatility eased significantly, with India VIX dropping nearly 19 per cent.

Investors are now closely watching the upcoming policy decision from the Reserve Bank of India’s Monetary Policy Committee later in the day.

On the institutional front, foreign investors remained cautious, with FIIs selling shares worth around Rs 8,692 crore on Tuesday. However, domestic institutional investors (DIIs) continued to provide support, pumping in nearly Rs 7,980 crore.

Market experts caution that volatility may persist due to lingering geopolitical uncertainties and continued foreign fund outflows. They recommend a selective buying approach, focusing on sectors like IT, banking, and oil-sensitive stocks, while maintaining strict risk management.

Globally, sentiment also turned positive. Asian markets rallied sharply, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI posting strong gains during early trading hours. Meanwhile, US markets ended on a mixed note, with the S&P 500 marginally higher and the Nasdaq slightly lower.

In commodities, oil prices saw a sharp correction. Brent crude and US WTI crude both dropped significantly—by over 15 per cent and 20 per cent respectively—reflecting easing concerns over supply disruptions following the ceasefire announcement.

With inputs from IANS