Indian markets jump over 2 per cent at open on easing Iran conflict concerns

Indian equity markets opened sharply higher on Wednesday, buoyed by positive global signals and growing optimism over a potential de-escalation in the West Asia conflict.

Benchmark indices recorded strong gains at the opening bell, with the Nifty 50 rising 567 points, or 2.54 per cent, to 22,899. The Sensex also surged, climbing 1,814 points, or 2.52 per cent, to 73,762.43 in early trade.

The rally was broad-based, with all sectoral indices trading in positive territory. Banking, automobile and information technology stocks led the advance, while mid-cap and small-cap indices also posted robust gains of 2 to 3 per cent, signalling widespread buying interest.

Investor sentiment was supported by indications from US President Donald Trump that American military operations against Iran could be paused within weeks. His remarks have fuelled hopes of a cooling in tensions, even as uncertainty persists over the broader geopolitical outlook.

Markets had come under significant pressure in March, with headline indices falling more than 10 per cent amid escalating geopolitical risks. The latest rebound reflects a partial recovery as investors respond to improving global cues.

Despite the upbeat start, analysts cautioned that volatility is likely to remain elevated given ongoing uncertainties. They advised investors to remain selective and focus on fundamentally strong stocks, particularly during periods of correction.

Market participants are also closely watching the 24,000 level on the Nifty, which analysts view as a key threshold for confirming a more sustained bullish trend.

Automobile stocks are expected to remain in focus in the near term as companies begin releasing their monthly sales data, which could provide further direction to the sector.

On the institutional side, foreign investors have continued to offload equities, with foreign institutional investors recording significant net sales earlier in the week. In contrast, domestic institutional investors have provided support to the market through consistent buying.

Global markets offered mixed cues. Wall Street ended unevenly overnight, while Asian markets traded firmly higher, with key indices in Japan, Hong Kong and South Korea posting notable gains.

Meanwhile, crude oil prices edged higher, with Brent crude trading above $105 per barrel and US West Texas Intermediate also registering gains, reflecting continued sensitivity to geopolitical developments.

As the situation in West Asia evolves, market direction is likely to remain closely tied to geopolitical signals and global economic trends.

With IANS inputs