Benchmark equity indices extended their gains for the second consecutive session on Wednesday and closed at their highest levels in nine months, driven by easing geopolitical tensions as there were no fresh reports of ceasefire violations by either Iran or Israel.
Following the truce, global crude oil prices declined 6.07% to $67.14 per barrel on Tuesday and remained at similar levels on Wednesday.
Tracking gains in other Asian markets, the BSE Sensex jumped 700.40 points, or 0.85%, to close at 82,755.51, while the NSE Nifty surged 200.40 points, or 0.80%, to end the day at 25,244.75.
The Sensex and the Nifty closed at their highest levels since October 3. They are currently 3.59% and 3.7% below their respective all-time highs, which were recorded in late September last year.
Besides India, Hong Kong (up 1.23%), China (up 1.04%), and Taiwan (up 1.09%) were among the top performers in the region.
“Markets maintained their positive tone and gained nearly a per cent, supported by favourable global cues. A strong handover from US markets triggered a gap-up start, which was further fuelled by buying interest in select heavyweight stocks,” said Ajit Mishra, senior vice president-research, Religare Broking.
On Tuesday, US markets closed on a strong note, with the Dow Jones rising 1.19%, the S&P 500 up 1.11%, and the Nasdaq 100 climbing 1.53% to all-time closing highs.
The recent resilience in markets despite mixed global cues reflects underlying strength, though heightened volatility continues to keep traders cautious, Mishra added.
Agreed Vaibhav Vidwani, research analyst at Bonanza Group: “The Indian stock market closed with notable gains, reflecting positive investor sentiment driven by easing geopolitical tensions and encouraging global trends.”
Market breadth was strong, with 2,821 gainers against 1,207 losers on the BSE. Investor wealth rose by Rs 3.91 lakh crore to Rs 454 lakh crore. The BSE Smallcap index outperformed benchmarks, jumping 1.59%, while the BSE Midcap index rose 0.63%. Both indices have delivered positive returns for four consecutive sessions.
As per provisional data from the BSE, foreign portfolio investors (FPIs) sold shares worth Rs 2,427.74 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 2,372.96 crore.
Barring capital goods and oil & gas, all other sectoral indices on the BSE ended in the green. TECK, IT, telecom, consumer discretionary, and consumer durables were the top gainers, rising up to 1.69%. Titan Company, Infosys, M&M, Bharti Airtel, and TCS were the top Sensex performers, advancing up to 3.61%.