Domestic equity benchmarks ended sharply higher on Wednesday, supported by strong global cues, easing crude oil prices and improved investor sentiment following a temporary ceasefire between the US and Iran.
The BSE Sensex settled the session near 77,600, soaring almost 3,000 points and 4 per cent, while the NSE Nifty50 rang the closing bell near 24k, jumping nearly 900 points.
Both benchmarks witnessed a strong rally, posting significant gains during the session. The Nifty reclaimed the crucial 24,000 mark, while the Sensex surged to its intraday high, reflecting a broad-based risk-on sentiment.
The rally was underpinned by improving global conditions, particularly after a sharp correction in crude oil prices and easing geopolitical tensions.
Ceasefire Boosts Sentiment, Oil Prices Slide
Investor confidence improved after the US and Iran agreed to a temporary halt in hostilities, reducing concerns over prolonged disruption in global energy supplies.
This development led to a steep fall in crude oil prices, with Brent crude declining sharply as the reopening of the Strait of Hormuz eased supply fears.
Lower oil prices are seen as positive for India, helping ease inflation concerns and supporting macroeconomic stability.
RBI Holds Rates, Maintains Neutral Stance
Back home, the Reserve Bank of India’s Monetary Policy Committee kept the benchmark repo rate unchanged at 5.25 per cent, in line with market expectations.
The central bank maintained a neutral policy stance, while signalling that current measures in the forex market are temporary. Investors closely tracked the policy commentary for cues on future rate direction and liquidity conditions.
