Equity benchmark indices Sensex and Nifty50 surged nearly 4% on Wednesday, tracking a sharp rally in global markets and a steep fall in crude oil prices after the US and Iran announced a two-week ceasefire. The rally was also supported by the Reserve Bank of India’s decision to keep the policy repo rate unchanged, broad-based buying across sectors and a strengthening rupee.Extending gains for the fifth straight session, the 30-share BSE Sensex jumped 2,946.32 points or 3.95% to close at 77,562.90, marking its best trading day in five years. During the session, it surged 3,018.96 points or 4% to hit 77,635.54.On the NSE, the Nifty soared 873.70 points or 3.78% to settle at 23,997.35, its highest single-day rally in 11 months. It touched an intra-day high of 24,025.15, rising 901.5 points or 3.89%. A total of 3,859 stocks advanced, while 537 declined and 101 remained unchanged on the BSE.
Nifty50 top gainers:
- Shriram Finance (9.95%)
- Adani Enterprises (8.60%)
- Tata Motors (PV) (8.44%)
- InterGlobe Aviation (8.13%)
- Eicher Motors (7.96%)
- Larsen & Toubro (7.60%)
- Bajaj Finance (7.02%)
- Mahindra & Mahindra (6.77%)
- Axis Bank (6.64%)
- Maruti Suzuki (6.29%)
Nifty50 top losers:
- Coal India (-2.97%)
- Tech Mahindra (-1.50%)
- Nestle India (-0.75%)
- Wipro (-0.64%)
- ONGC (-0.41%)
- Dr Reddy’s (-0.40%)
- Hindalco (-0.29%)
- Sun Pharma (-0.20%)
- Power Grid (-0.19%)
BSE Sensex top gainers:
- InterGlobe Aviation (8.13%)
- Larsen & Toubro (7.60%)
- Bajaj Finance (7.02%)
- Mahindra & Mahindra (6.77%)
- Axis Bank (6.64%)
- Maruti Suzuki (6.29%)
- Titan Company (6.20%)
- UltraTech Cement (6.10%)
- Bajaj Finserv (5.95%)
- HDFC Bank (5.72%)
BSE Sensex top losers:
- Tech Mahindra (-1.50%)
- Sun Pharma (-0.20%)
- Power Grid (-0.19%)
“The rally was primarily driven by a sharp improvement in global sentiment following the announcement of a temporary ceasefire between the US and Iran, which led to a significant cooling in crude oil prices and eased concerns around inflation and global growth,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.He added that the RBI’s decision to maintain status quo on rates with a neutral stance was also seen as supportive for equities.All sectoral indices ended in the green. Realty jumped 6.76%, auto 6.55%, BSE PSU Bank 5.79%, Bankex 5.72%, Private Banks 5.62%, Financial Services 5.48%, Services 5.22%, Consumer Discretionary 5.11% and Industrials 4.87%.The BSE MidCap Select index gained 4.93%, while the SmallCap Select index advanced 4.01%.Brent crude, the global oil benchmark, plunged 13.89% to USD 94.09 per barrel, while the rupee appreciated 47 paise to close at 92.59 (provisional) against the US dollar.Asian markets mirrored the rally, with South Korea’s Kospi surging 6.87% and Japan’s Nikkei 225 jumping 5.39%. Shanghai’s SSE Composite and Hong Kong’s Hang Seng also posted strong gains, while European markets were trading significantly higher. US markets ended flat on Tuesday.“The ceasefire announcement sharply reduced fear and risk-off sentiment, with India’s volatility index dropping over 20 per cent, indicating a swift compression in uncertainty. This positive sentiment was mirrored across global markets, as the US, European, and Asian indices posted a broad-based recovery, reinforcing the strength of the current rally,” said Ponmudi R, CEO of Enrich Money, PTI quoted.He added that energy markets reacted sharply, with Brent crude correcting towards the USD 92 mark amid signals of safe passage through the Strait of Hormuz during the ceasefire period.Meanwhile, the RBI’s Monetary Policy Committee unanimously kept the benchmark repo rate unchanged at 5.25%, adopting a cautious stance amid uncertainty from the West Asia conflict.Foreign institutional investors sold equities worth Rs 8,692.11 crore on Tuesday, while domestic institutional investors bought Rs 7,979.50 crore, as per exchange data.Vinod Nair, Head of Research, Geojit Investments Ltd, said, “The interim ceasefire is seen as a step toward broader regional stability. India benefits immediately from the reopening of the Hormuz Strait, which has pushed oil prices below USD 100 and reduced downside risks to FY27 EPS growth”.He added that improving sentiment has lowered bond yields, strengthened the rupee and supported financial stocks, while the RBI’s policy stance added to market confidence.
Leave a Reply