Indian benchmark indices opened sharply higher on Wednesday, extending gains for the second consecutive session as easing concerns over the West Asia conflict and a steep fall in crude oil prices boosted investor sentiment. The BSE Sensex surged to 75,265.03 in early trade, while the Nifty 50 climbed to 23,303.05, gaining 390.65 points or 1.70%. Market participants remained focused on the key 23,000 level for the Nifty. Analysts say a sustained move above this level could trigger a further short squeeze, potentially pushing the index higher in the near term.
Global geopolitical developments also supported market sentiment. Donald Trump, President of the United States, spoke with Narendra Modi, Prime Minister of India, about the ongoing situation in the Middle East and stressed the importance of keeping the Strait of Hormuz open for global energy supplies. The rally was largely driven by growing optimism that tensions involving Iran may ease. Reports suggest the United States is working on a possible month-long ceasefire and has shared a 15-point plan with Iran. Trump also indicated that progress is being made toward ending the conflict, although Iran has denied any direct negotiations so far. Despite the mixed signals, markets appear to be reacting positively to the possibility of de-escalation.
Another major factor supporting equities was the sharp drop in crude oil prices. As of around 9:25 am, Brent crude was trading at $99.78, down 4.51%, while West Texas Intermediate crude stood at $88.96, lower by 3.67%. Lower oil prices are seen as positive for India as they help reduce inflationary pressures and ease concerns over higher energy import costs. Asian markets also contributed to the upbeat mood, rising around 1.9% and providing additional support to Indian equities during early trade. Analysts believe that if geopolitical tensions continue to ease and crude prices remain stable, market momentum could stay positive in the near term.