Dalal Street experienced a significant surge on Wednesday as equity benchmarks opened strongly higher, rising more than 3% each following the declaration of a two-week ceasefire in the US-Israel-Iran conflict. The Sensex soared by 3.71% or 2,775 points to reach 77,392, marking an intra-day high early in trading. Similarly, the Nifty stood at 23,938, up by 3.52% or 815 points from the previous close, driven by increased buying in auto, realty, banking, IT, and metal sector stocks.
Various sectors across the board saw a rebound and traded positively, with real estate, auto, banking, and pharma stocks climbing up to 6%. Smallcap and midcap indices emerged as the top gainers in their categories, while largecaps also showed an upward trend. Additionally, India VIX witnessed a 19% decline during this period.
Traders and investors are keeping a close watch on the Reserve Bank of India’s MPC outcome scheduled for later in the day. Foreign Institutional Investors (FIIs) were net sellers of around Rs 8,692 crore on Tuesday, whereas Domestic Institutional Investors (DIIs) continued their robust buying streak with inflows of approximately Rs 7,980 crore. Analysts predict that market volatility may persist due to ongoing geopolitical uncertainties and continuous outflows of foreign funds.
US President Donald Trump announced a conditional ceasefire with Iran, contingent on Iran agreeing to the immediate, complete, and safe opening of the Strait of Hormuz. This development is expected to have a two-week duration. Globally, Asian and US markets displayed positive trends, with the Nikkei, Hang Seng, and KOSPI advancing significantly during intraday trading.
On the other hand, oil commodities witnessed a substantial decline, with Brent crude futures dropping by 15.91% to $91.88 and US WTI crude falling by about 20% to $91.05.
