Indian equity benchmarks experienced a strong start on Wednesday, with the Sensex and Nifty indicating firm gains in the pre-open session after a holiday on Tuesday for Ambedkar Jayanti, tracking upbeat global cues and easing crude oil prices.
The BSE Sensex opened the session around 78,200, rallying more than 1,300 points, while the NSE Nifty50 started trading above 24,200, climbing almost 400 points, as of 9:15 AM.
GIFT Nifty Signals Gap-Up Opening
Early indicators pointed to a strong opening, with GIFT Nifty trading at 24,227.50, up 369.80 points or 1.55 per cent. In the pre-open session, around 9:05 AM, the Sensex rose close to 900 points or more than 1 per cent to cross 77,700, and the Nifty jumped nearly 300 points or 1.21 per cent to surpass 24,100.
The uptick reflects improving investor sentiment amid expectations that geopolitical tensions may ease following renewed diplomatic signals between the US and Iran.
US-Iran Conflict: Latest Developments Driving Markets
The trajectory of the US-Iran conflict continues to remain the biggest driver for global markets, particularly due to its impact on oil prices and investor risk appetite.
After the breakdown of earlier negotiations, tensions had escalated sharply, with a blockade on Iranian oil exports and disruptions in the Strait of Hormuz pushing crude prices above $100 per barrel and triggering a sell-off in global equities earlier this week.
However, sentiment has improved following fresh indications that both sides may return to the negotiating table. Reports suggest a second round of talks could be scheduled soon, with US President Donald Trump signalling that the conflict may be nearing a resolution.
This shift in tone has helped calm markets, with investors increasingly pricing in a potential de-escalation. Nonetheless, uncertainty remains high, as the situation continues to evolve and any setback in talks could quickly reverse sentiment.
Top Gainers And Losers
Among the top gainers were InterGlobe Aviation, Infosys, Tata Consultancy Services, Eternal, Larsen & Toubro and Bajaj Finance, which led the advances in the opening trade.
Market sentiment received a boost from easing geopolitical concerns and softer crude oil prices. Analysts pointed to renewed hopes of diplomatic engagement in West Asia as a key factor supporting equities.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that expectations around the possible resumption of US-Iran talks and Israel-Lebanon discussions, along with a sharp fall in Brent crude prices, are positive signals for markets in the near term.
He highlighted that crude prices have declined by around $10 over the past two days, which could help ease inflationary pressures and support risk sentiment.
Institutional Activity Remains Mixed
On the institutional front, foreign investors continued to remain cautious. Foreign Institutional Investors (FIIs) were net sellers on Monday, offloading equities worth Rs 1,983.18 crore, according to exchange data.
In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing shares worth Rs 2,432.30 crore.
Global Markets Rally On Optimism
Asian equities advanced in early trade, tracking strong gains on Wall Street. South Korea’s Kospi led regional gains, while Japan’s Nikkei 225 and Chinese indices also traded higher.
US markets closed firmly in the green overnight, supported by easing inflation concerns and optimism around geopolitical developments, signalling a revival in global risk appetite.
Oil Prices Ease, Supporting Risk Sentiment
Crude oil prices declined in Asian trading as hopes of renewed negotiations reduced concerns over prolonged supply disruptions.
Brent crude traded below the $95 per barrel mark, extending its recent correction after sharp gains earlier this week. Lower oil prices are seen as positive for India, helping ease inflationary pressures and supporting macro stability.
Monday Recap: Markets Had Ended Lower
In the previous session on Monday, domestic markets had ended in the red, weighed down by the collapse of US–Iran talks and a spike in crude oil prices.
The Sensex dropped 702.68 points, or 0.91 per cent, to close at 76,847.57, while the Nifty declined 207.95 points, or 0.86 per cent to 23,842.65.
The sell-off reflected concerns over prolonged geopolitical tensions, elevated oil prices and their impact on inflation and growth.