The Indian stock market opened higher on Wednesday, with the SENSEX rising over 300 points and the NIFTY50 opening above 24,150. According to reports from The Economic Times, the positive opening was supported by significant developments in the Middle East, with Trump announcing a decision to end military operations against Iran based on Pakistan's request as an intermediary. US Secretary of State Marco Rubio confirmed that the country has achieved its objectives in the military campaign, though the US blockade of Iranian ports would remain in place. The market's early strength reflects investor optimism driven by favorable global cues and the potential end to the ongoing Middle East conflict.
Oil prices dropped significantly as a result of the latest hopes for a sooner end to the Middle East conflict, with Brent crude futures declining around 2% to $108 per barrel and WTI crude futures dropping 2% to $100 per barrel. This comes after Brent soared above the $120 per barrel level last week, marking the highest level since Russia's invasion of Ukraine in 2022. The decline in oil prices provided crucial relief to investors and contributed significantly to the positive market opening. Additionally, positive support from Asian markets and recent developments in West Asia continued to support the overall market sentiment.
Among the top gainers during the early trading session were Mahindra & Mahindra (M&M) and IndiGo. As reported by The Economic Times, these stocks led the market's upward momentum, contributing significantly to the positive opening. The strong performance of these major stocks indicates broad-based buying interest across different sectors of the Indian equity market. Notably, Mahindra & Mahindra emerged as today's Sensex top gainer, with the company beating analysts' estimates by reporting a 42% surge in consolidated net profit to ₹4,668 crore for the fourth quarter of FY26.
The Indian rupee opened 0.26% higher at 95.03 against the US dollar, compared with the previous closing level of 95.28, after an incessant free fall. Global markets rallied sharply, with South Korea's Kospi surging as much as 7%, while China's Shanghai Composite and Hong Kong's Hang Seng were up around 1% each. Notably, Samsung Electronics' market capitalisation surpassed $1 trillion, making it the second Asian company after TSMC to reach this milestone. Despite the renewed optimism, FII investors remained net sellers of Indian equities, selling shares worth more than ₹3,621 crore on Tuesday, while US bond yields inched up slightly.
Technically, market sentiment remains cautiously bullish, but a sustained daily close of Nifty above 24,250 is needed to extend the rally towards 24,350-24,450, according to Rajesh Palviya, Head of Research at Axis Direct. If 23,900 is not held, the index could test the 23,800-23,700 zone. Despite the positive opening, some caution is warranted as investors focus on upcoming results from major companies including Disney and Uber, while NVIDIA's Q1 earnings later this month remain a key event for global markets.
