Sensex surges 1,300 points as easing US-Iran tensions lift market mood

Mumbai — Indian equity markets opened sharply higher on Wednesday, with benchmark indices rallying as global sentiment improved following signs of easing tensions between the United States and Iran.

Investor confidence got a boost after Donald Trump indicated that the conflict with Iran may be nearing its end, raising hopes of reduced geopolitical risk and greater market stability.

The BSE Sensex jumped around 1,300 points, or 1.70 per cent, to trade near 78,150 in early deals. Meanwhile, the Nifty 50 surged 1.61 per cent, gaining nearly 393 points to reach 24,237.

Strong technical and sentiment support

Market experts noted that the Nifty has immediate support in the 23,900–24,000 range, while resistance is seen around 24,250–24,300 levels, indicating a cautiously optimistic outlook.

Volatility also cooled significantly, with the India VIX dropping over 15 per cent to around 17.34. This decline signals that traders expect lower uncertainty in the near term.

Broader markets and sectors shine

The rally was broad-based, with midcap and smallcap stocks outperforming the main indices. Both segments gained over 2 per cent, reflecting strong participation across the market.

On the sectoral front, PSU banks and IT stocks led the charge, while pharma stocks lagged and emerged as the only weak spot in early trading.

Oil prices add to positive cues

Global cues also supported the rally, as crude oil prices softened in the Asian session. Brent crude futures slipped slightly to around $94.45 per barrel, easing concerns over supply disruptions, particularly around the Strait of Hormuz.

Cautious optimism ahead

Analysts believe the combination of easing geopolitical tensions, softer oil prices, and declining volatility has created a favourable environment for equities. However, they also advise investors to stay selective and disciplined, as global uncertainties have not completely disappeared.

For now, the strong opening suggests that markets are reacting positively to any signs of stability on the global front, with sentiment firmly tilted towards risk-on in early trade.

With inputs from IANS