Indian equity markets started strong on Wednesday as both benchmark indices rallied amid reduced geopolitical concerns following hints of de-escalation between the United States and Iran. Investor optimism grew after US President Donald Trump suggested a potential resolution to the conflict with Iran, fostering hopes for stability in global markets.
In early trading, the Nifty surged by 1.61%, or 392.75 points, reaching 24,237.70, while the Sensex climbed 1.70%, or 1,303 points, to 78,150.54. Market experts noted that the Nifty’s immediate support lies at 23,900–24,000, with resistance levels at 24,250–24,300.
Market volatility notably decreased, with the Nifty India Volatility Index falling by 15.4% to 17.34 shortly after the markets opened. This decline in the volatility index indicates a reduced expectation of uncertainty in the near future.
The broader markets outperformed the main indices, with the Nifty MidCap and Nifty SmallCap indices rising by 2.09% and 2.10%, respectively. In terms of sectors, PSU banks and IT stocks led the gains, while the pharma sector lagged behind as the worst performer during early trading.
Additionally, crude oil prices saw a decline in the Asian session, further boosting positive sentiment. Brent crude futures for the April contract slipped by 0.36% to $94.45 per barrel, as optimism grew regarding potential progress in US-Iran talks to avert any disruptions at the Strait of Hormuz.
Analysts highlighted that the combination of easing geopolitical tensions, lower oil prices, and reduced volatility has significantly bolstered investor confidence, driving Indian equities higher in early trading. An analyst advised investors to maintain discipline and be selective given the ongoing global uncertainties and elevated volatility on April 15.
