Indian equity markets opened on a strong note on Wednesday, tracking upbeat global cues and a sharp correction in crude oil prices, even as investors remained focused on the Reserve Bank of India’s (RBI) monetary policy decision due later in the day.
Both benchmarks skyrocketed and climbed over 3 per cent as markets started trading. The BSE Sensex opened trading near 77,200, soaring 2,600 points, and the NSE Nifty50 started the session around 23,850, jumping more than 700 points, as of 9:15 AM.
At around 9:07 AM in the pre-open session, the Sensex surged 2,681.77 points or 3.59 per cent to 77,298.35, while the Nifty50 jumped 734.95 points or 3.18 per cent to 23,858.60, indicating a sharp gap-up opening.
Global Rally Lifts Market Sentiment
Global cues remained firmly supportive, with Asian equities witnessing a strong rebound after reports of easing geopolitical tensions.
Japan’s Nikkei 225 led the rally, surging 5.28 per cent or 2,822.44 points, while South Korea’s Kospi advanced 5.61 per cent or 308.11 points. Hong Kong’s Hang Seng and Taiwan’s Weighted Index also recorded solid gains.
The broad-based rally reflects improved investor sentiment following weeks of volatility linked to tensions in West Asia.
GIFT Nifty Signals Strong Opening
India’s GIFT Nifty mirrored the global optimism, rising over 3 per cent to trade near 23,841 levels in early deals.
The strong uptick pointed to a firm opening for domestic benchmarks, although traders are expected to remain cautious ahead of key domestic triggers.
Oil Prices See Sharp Correction
Crude oil prices declined significantly, providing a major boost to market sentiment. Brent crude dropped 13.04 per cent to $95.02 per barrel, while US crude fell 13.76 per cent to $97.41 per barrel in early trade.
The correction follows easing concerns over supply disruptions after developments around the Strait of Hormuz, a key global energy route.
Lower oil prices are typically supportive for India, helping ease inflationary pressures and improving macroeconomic conditions.
Ceasefire Developments Ease Concerns
Sentiment improved after reports of a temporary easing in hostilities, with Iran indicating a pause in military operations under certain conditions and allowing safe passage through the Strait of Hormuz for a limited period.
Earlier, US President Donald Trump also indicated a pause in military action, signalling potential progress in negotiations.
These developments have provided relief to global markets, although the situation remains fluid.
RBI Policy Decision In Focus
Despite the strong global cues, the key trigger for domestic markets remains the RBI’s Monetary Policy Committee (MPC) decision, expected later in the day.
Investors will closely track the central bank’s stance on interest rates, inflation and growth, along with forward guidance.
The interplay of lower crude prices and global uncertainties is likely to influence the RBI’s outlook.
Previous Session Recap
On Tuesday, domestic markets ended higher, supported by a decline in crude oil prices and a rally in global equities.
The Sensex rose 509.73 points, or 0.69 per cent, to settle at 74,616.58, while the Nifty advanced 155.40 points, or 0.68 per cent, to close at 23,123.65.
