Indian equity benchmarks reversed course and looked forward to a rally on Wednesday morning. Backed by easing crude oil prices and improving global sentiment amid hopes of progress in US-Iran negotiations, both indices, Sensex and Nifty, rang the opening bell in green.
The BSE Sensex started the session around 77,600, soaring more than 550 points, while the NSE Nifty50 opened trading above 24,200, climbing nearly 200 points, around 9:15 AM.
GIFT Nifty Signals Firm Start As Oil Prices Ease
Early indicators remained supportive, with the GIFT Nifty trading at 24,263.50, up nearly 157 points.
In the pre-open session around 9:03 AM, the Sensex advanced 327.94 points, or 0.43 per cent, to 77,345.73. The Nifty also gained 127.80 points, or 0.53 per cent, to trade at 24,158.85, indicating a firm opening for domestic markets.
Investor sentiment improved after signs emerged that tensions in West Asia could ease, helping crude oil prices retreat from recent highs. Market participants are closely tracking diplomatic developments between Washington and Tehran, which continue to influence global risk appetite.
US-Iran Talks In Focus; Hormuz Concerns Persist
Markets found support after US President Donald Trump indicated that “Project Freedom”, a military effort aimed at securing shipping routes through the Strait of Hormuz, would be temporarily paused while negotiations with Iran continue.
The development raised hopes of a possible agreement that could reduce disruptions in the crucial energy corridor, which handles a significant share of global oil shipments.
However, geopolitical uncertainty remains elevated after recent attacks on energy infrastructure in West Asia heightened fears of supply disruptions.
Asian Markets Rally; Kospi Extends Record Run
Equity markets across Asia-Pacific traded higher on Wednesday morning, tracking optimism around the easing geopolitical situation.
South Korea’s Kospi surged 5.6 per cent, extending its record rally, while Hong Kong’s Hang Seng gained 1.04 per cent. Australia’s S&P/ASX 200 also moved 0.81 per cent higher.
The positive momentum followed a strong overnight performance on Wall Street.
Wall Street Ends Higher
US markets closed firmly in the green overnight, with investors welcoming the possibility of easing tensions in West Asia.
The S&P 500 climbed 0.81 per cent, while the Dow Jones Industrial Average rose 0.73 per cent. The Nasdaq Composite outperformed with gains of 1.03 per cent.
Brent Crude Slips Below Recent Highs
Crude oil prices eased in early trade as traders assessed the possibility of diplomatic progress between the US and Iran.
Brent crude futures declined 1.49 per cent to around $108.23 per barrel on the Intercontinental Exchange, though prices remained elevated compared to pre-conflict levels.
For Indian markets, any sustained decline in crude prices could help ease concerns around inflation, currency weakness, and corporate margins.
Gold, Silver Gain Amid Lingering Uncertainty
Despite improving risk appetite in equities, precious metals remained firm.
Gold futures rose 1.46 per cent, while silver futures gained 2.29 per cent, reflecting continued demand for safe-haven assets amid lingering geopolitical uncertainty.
Previous Session: Markets Ended Lower Amid Volatility
On Tuesday, benchmark indices ended in the red after renewed tensions around the Strait of Hormuz and pressure on the rupee weighed on sentiment.
The Sensex fell 251.61 points to close at 77,017.79, while the Nifty slipped 86.50 points to settle at 24,032.80. Banking and financial stocks were among the biggest drags, although selective buying in FMCG, IT, and auto shares limited deeper losses.
