Sensex and Nifty surge nearly 1% on hopes of easing West Asia tensions

Indian equity benchmarks climbed sharply in early trading on Wednesday, with the Sensex and Nifty gaining nearly 1 per cent each amid improving global sentiment and hopes of de-escalation in the West Asia conflict.

The BSE Sensex rose 657 points, or 0.85 per cent, to touch an intraday high of 77,675, while the NSE Nifty advanced 217 points, or 0.90 per cent, to trade around 24,250.

Banking, auto, metal and IT stocks led the rally, with the Nifty PSU Bank, Private Bank, Auto, Metal and IT indices gaining up to 2 per cent. Most sectoral indices traded in positive territory during the session.

However, some heavyweight stocks including Larsen & Toubro, Hindustan Unilever, ONGC, Power Grid Corporation of India and ITC Limited lagged behind the broader market gains.

Market analysts said investor sentiment remained cautiously optimistic despite expectations of near-term volatility.

One analyst noted that the market’s technical outlook remained positive, but added that the Nifty would need to sustain a close above the 24,250 mark to extend gains towards the 24,350–24,450 range. Failure to hold above 23,900 could trigger a pullback towards 23,800 or lower, the analyst added.

Another market expert said the broader trend remained constructive, although consolidation and volatile trading were likely in the short term.

Investor confidence was boosted by a decline in global oil prices for the second consecutive session, fuelled by hopes that tensions in West Asia could ease and disrupted energy supplies may resume.

Optimism also strengthened after US President Donald Trump signalled the possibility of a peace agreement with Iran, suggesting progress towards a broader diplomatic settlement. Iran has yet to respond publicly to the remarks.

Despite the diplomatic overtures, the US Navy continues to maintain restrictions around Iranian ports.

In the commodities market, Brent crude fell more than 2 per cent to $107.56 a barrel, while US benchmark West Texas Intermediate dropped 3 per cent to $99.12 a barrel.

Asian markets also traded higher, reflecting the upbeat global mood. Japan’s Nikkei gained 0.71 per cent, Hong Kong’s Hang Seng rose more than 1 per cent and South Korea’s KOSPI surged nearly 7 per cent.

On Wall Street overnight, the S&P 500 closed 0.81 per cent higher, while the Nasdaq gained 1 per cent.

With IANS inputs