Benchmark equity indices resumed trading on a strong note on Wednesday after a holiday, as easing geopolitical tensions lifted investor sentiment.
Global markets rallied over the past two sessions on optimism surrounding a potential Middle East deal. The stabilisation of crude oil prices (around $94 per barrel) and the Indian rupee (which closed flat at 93.38) further supported sentiment. Market volatility also cooled, with the India VIX falling 8.93% to 18.67.
The Sensex surged 1,263.67 points, or 1.64%, to close above the 78,000 mark at 78,111.24, while the Nifty rose 388.65 points, or 1.63%, to settle at 24,231.30.
So far in April (across nine sessions), the Sensex and Nifty have gained 8.57% and 8.51%, respectively, recovering more than 75% of the losses triggered by the West Asia conflict. During the crisis, the indices had declined 11.49% and 11.31%, respectively.
Midcaps and Smallcaps Lead
Broader markets outperformed the benchmarks, with the BSE Midcap and BSE Smallcap indices rising 2.20% and 2.56%, respectively. Both indices have now fully recouped their war-driven losses. The BSE Midcap has surged 11.66% in April after an 11.16% decline in March, while the BSE Smallcap has gained 14.7% following a 10.9% drop in the previous month.
Investor wealth jumped by ₹9.41 lakh crore on Wednesday to ₹458.55 lakh crore. Overall, investors have recovered about ₹46 lakh crore of the ₹51 lakh crore market capitalisation lost during the conflict.
“The Indian equity market is likely to maintain its upward bias as long as the peace-talk narrative holds and crude prices remain stable, although FII flows and geopolitical developments will be closely monitored,” said Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services.
He added that the rally was driven by a shift in geopolitical tone, with U.S. President Donald Trump indicating that US–Iran talks could resume soon and suggesting the conflict was “close to being over.”
Sectoral Performance
Equity benchmarks remained buoyant throughout the session, supported by broad-based buying and positive global cues, said Ankur Punj, MD & Business Head at Equirus Wealth, adding that investors are hopeful of a favourable outcome as talks are expected to resume shortly.
Market breadth remained strong, with 3,587 gainers against 800 losers on the BSE. All sectoral indices ended in the green, led by consumer durables, which rose 2.91%, followed by IT, realty, oil & gas, and healthcare.
Foreign portfolio investors were net buyers, purchasing shares worth ₹666.15 crore, while domestic institutional investors sold equities worth ₹568.98 crore, according to provisional BSE data.
All but three Sensex stocks and 45 of the 50 Nifty constituents ended higher. IndiGo, Power Grid, Tech Mahindra, and TCS were among the top gainers, rising up to 4.63%.
Heavyweights HDFC Bank, Reliance Industries, L&T, Infosys, and TCS together contributed 643 points, or 51%, to the Sensex’s total gain.
In Asia, most markets closed higher, except Indonesia and Malaysia. South Korea led the gains, followed by India, Taiwan, Thailand, and the Philippines.