Indian stock markets opened in positive territory on Wednesday, with Sensex gaining around 359 points to open at 77,246 and Nifty 50 rising over 101 points to begin the session at 24,097. According to reports from The Economic Times, this positive sentiment was driven by reports of Iran reportedly submitting a fresh proposal to regional intermediaries offering to cease its military operations in the Strait of Hormuz, boosting hopes for an early end to the conflict in the Middle East. The India VIX, which measures volatility in markets, declined around 2% to 18.05 in early trading, indicating reduced market volatility.
Eternal shares were the top gainers on Sensex, jumping more than 4% after the Zomato- and Blinkit-parent reported strong earnings for the fourth quarter of FY26. As reported by The Economic Times, Maruti Suzuki, Adani Ports, Bharat Electronics, Infosys and Reliance Industries shares followed, rising up to 3%. However, Asian Paints, ICICI Bank, Bajaj Finserv, Axis Bank and Bajaj Finance shares were trading in the red with marginal losses. Broader markets continued to outperform, with the Nifty Smallcap 100 index rising 0.7% and the Nifty Midcap 100 index rising 0.6% in the morning. All sectoral indices on NSE opened in the green, with around 1,932 stocks advancing on NSE, while 397 declined and 99 remained unchanged.
Despite the renewed optimism, some caution is warranted according to market experts. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that although there are important developments happening in the Gulf region, there is no solution to the energy crisis caused by the closure of the Strait of Hormuz. As reported by The Economic Times, he stated that UAE's decision to quit OPEC might have a bearing on crude prices in the medium term, but it is unlikely to ease crude prices in the near term. The analyst added that there are indications that the US-Iran stand-off may continue much longer, with Brent crude at $110 being negative for India. He emphasized that as long as crude prices remain elevated, the downside risk to India's growth and the upside risk to inflation will remain high.
The market will be closely watching several key developments in the coming days. According to The Economic Times, the market will be closely watching the political developments after the state elections end today, with exit polls this evening might give indications of possible outcomes. The analyst also highlighted that the Fed decision today will be a pause in light of the uncertainty surrounding the West Asia conflict and rising inflation, with the message from the Fed chief being more important. These factors will likely influence market sentiment in the near term as investors assess the impact of geopolitical developments on economic conditions.
