Indian equity benchmarks opened strongly on Wednesday morning, with the BSE Sensex soaring over 550 points to start around 77,600, while the NSE Nifty50 opened trading above 24,200, climbing nearly 200 points. According to reports from The Economic Times, the positive momentum was supported by easing crude oil prices and improving global sentiment amid hopes of progress in US-Iran negotiations. In the pre-open session around 9:03 AM, the Sensex advanced 327.94 points, or 0.43 per cent, to 77,345.73, while the Nifty gained 127.80 points, or 0.53 per cent, to trade at 24,158.85. The rally gained further momentum as GIFT Nifty trading at 24,263.50, up nearly 157 points, indicating strong early indicators for domestic markets.
Markets found support after US President Donald Trump indicated that 'Project Freedom', a military effort aimed at securing shipping routes through the Strait of Hormuz, would be temporarily paused while negotiations with Iran continue. As reported by The Economic Times, this development raised hopes of a possible agreement that could reduce disruptions in the crucial energy corridor, which handles a significant share of global oil shipments. However, geopolitical uncertainty remains elevated after recent attacks on energy infrastructure in West Asia heightened fears of supply disruptions. Market participants are closely tracking diplomatic developments between Washington and Tehran, which continue to influence global risk appetite.
Equity markets across Asia-Pacific traded higher on Wednesday morning, tracking optimism around the easing geopolitical situation. According to The Economic Times, South Korea's Kospi surged 5.6 per cent, extending its record rally, while Hong Kong's Hang Seng gained 1.04 per cent and Australia's S&P/ASX 200 moved 0.81 per cent higher. The positive momentum followed a strong overnight performance on Wall Street, with the S&P 500 climbing 0.81 per cent, the Dow Jones Industrial Average rising 0.73 per cent, and the Nasdaq Composite outperforming with gains of 1.03 per cent. US markets closed firmly in the green overnight, with investors welcoming the possibility of easing tensions in West Asia.
Brent crude futures declined 1.49 per cent to around $108.23 per barrel on the Intercontinental Exchange, as traders assessed the possibility of diplomatic progress between the US and Iran. As reported by The Economic Times, for Indian markets, any sustained decline in crude prices could help ease concerns around inflation, currency weakness, and corporate margins. Despite improving risk appetite in equities, gold futures rose 1.46 per cent, while silver futures gained 2.29 per cent, reflecting continued demand for safe-haven assets amid lingering geopolitical uncertainty. Crude oil prices eased in early trade as traders assessed the possibility of diplomatic progress between the US and Iran, though prices remained elevated compared to pre-conflict levels.
On Tuesday, benchmark indices ended in the red after renewed tensions around the Strait of Hormuz and pressure on the rupee weighed on sentiment. According to The Economic Times, the Sensex fell 251.61 points to close at 77,017.79, while the Nifty slipped 86.50 points to settle at 24,032.80. Banking and financial stocks were among the biggest drags, although selective buying in FMCG, IT, and auto shares limited deeper losses. The previous session's decline provided the backdrop for Wednesday's strong recovery as investor sentiment improved after signs emerged that tensions in West Asia could ease.
