Sensex surges 2,775 pts, Nifty jumps 3.5% on U.S.-Iran ceasefire

The rally extended across multiple sectors with rate-sensitive stocks leading the charge ahead of the RBI policy announcement. As reported by Fortune India, the Nifty Realty index led the gains, surging 5.50%, followed by strong gains in the Nifty Auto index, which rose 4.87%. Financials also saw robust buying, with the Nifty Financial Services 25/50 climbing 4.43%, the Nifty PSU Bank gaining 4.23%, and the Nifty Private Bank advancing 4.06%. Other key performers included the Nifty Consumer Durables index rising 3.93% and the Nifty FMCG index gaining 1.76%. Metal stocks also participated in the rally, with the Nifty Metal index up 2.63%, while the Nifty Oil & Gas index added 2.33% amid easing crude oil prices. Broader markets also saw strong buying, with midcap and smallcap indices surging up to 3%, with the NIFTY Midcap 100 adding 3.1% and the NIFTY Smallcap 100 climbing 2.9%. Asian markets rallied sharply on Wednesday, tracking improved global sentiment after the announcement of a 15-day ceasefire between Iran and the US, with Japan's Nikkei 225 surging over 5%, South Korea's Kospi jumping more than 6%, and Taiwan's Weighted Index rising over 4%.

The sharp upmove came as crude oil prices plunged significantly following the announcement of a two-week ceasefire between the United States and Iran, easing concerns around fuel costs and inflation. According to Fortune India, oil futures dropped significantly with Brent crude falling to around $94 per barrel and WTI crude hovering near $97 per barrel, both down nearly 13%. The rupee appreciated 50 paise to 92.56 against the US dollar in early trade, further supporting the positive sentiment. Asian markets rallied sharply on Wednesday, tracking improved global sentiment after the announcement of a 15-day ceasefire between Iran and the US, with Japan's Nikkei 225 surging over 5%, South Korea's Kospi jumping more than 6%, and Taiwan's Weighted Index rising over 4%. The Dow Jones futures surged over 2% during the early morning session, after sharp volatility in the overnight trade. US President Donald Trump announced on Truth Social on Tuesday that he will suspend military actions against Iran for two weeks, with Iran accepting the ceasefire plan, as talks to finally end the conflict are to begin in Islamabad on Friday.

Information technology stocks traded largely muted on Wednesday, underperforming a sharply rising broader market, as investors rotated into cyclical and domestic-facing sectors amid a strong risk-on rally. At 12:00 noon, the Sensex was up more than 2,700 points or 3.6% at above 77,300, while the Nifty rose over 800 points to stay firmly above 23,900. In contrast, the Nifty IT index was flat with a marginal gain of just 0.12%, making it one of the laggards among sectoral indices. Within the IT pack, performance was mixed with TCS rising around 0.8%, LTIMindtree and Coforge gaining about 1-1.3% each, and HCL Technologies adding around 0.5%. However, key heavyweights dragged the index lower, with Infosys slipping marginally, Wipro declining around 0.6%, and Tech Mahindra falling over 1%, placing some IT names among the top losers on the Nifty. The muted performance follows a recent rebound in IT stocks, which had gained momentum over the past few sessions on expectations of a better-than-anticipated March quarter and short covering after a sharp correction. Wednesday's strong rally in the broader market has triggered a shift in positioning, with investors favouring sectors that are more directly linked to domestic growth and benefit from falling crude prices.

The auto sector rally accompanied the RBI's decision to maintain the repo rate unchanged at 5.25% while retaining a neutral stance. As reported by The Hindu BusinessLine, the RBI upped its GDP growth projection for FY27 slightly to 6.9% from the earlier 6.7%, while raising the inflation projections for FY27 to 4.6% from the earlier 4.2%. The central bank's calibrated approach signals robust underlying fundamentals and a confident domestic outlook. Foreigners withdrew over ₹8,700 crore while domestic players invested around ₹8,000 crore, with yesterday marking day 25 of selling by foreign investors. The India VIX declined over 21%, signalling a sharp drop in volatility amid the favorable market conditions. VK Vijayakumar, chief investment strategist at Geojit Investments, noted that the ceasefire will embolden bulls to charge again, aided by fair market valuations, with the Nifty 50 expected to cruise towards 24,000 in the near-term. Ajit Mishra, SVP of Research at Religare Broking, said after the sharp dip in crude post the US-Iran ceasefire, the Nifty may test 24,000 soon, with further positive news flows potentially resulting in further advances.

JPMorgan has upgraded Hindalco Industries and Vedanta Limited to 'overweight', raising their price targets to ₹1,125 and ₹850, respectively**, on expectations of a sustained upcycle in aluminium prices driven by supply disruptions. The revised targets indicate an upside potential of 18% for Hindalco and 19% for Vedanta from their Tuesday closing levels. Larsen & Toubro shares surged up to 8.11% to hit an intraday high of ₹4,025 after U.S. President Donald Trump announced a two-week ceasefire with Iran, tied to the immediate and secure reopening of the Strait of Hormuz. Tata Motors and Tata Motors Passenger Vehicles rallied up to 11% after the ceasefire agreement, as falling crude oil prices directly reduce fuel costs for fleet operators. Titan shares soared 6% to hit an intraday high of ₹4,472.50 after reporting a 42% year-on-year rise in its domestic business and a sharp 156% YoY growth in its international business for Q4 FY2026, surpassing estimates.