Global markets experienced a broad-based rally on Wednesday as optimism grew around a potential US-Iran peace deal. According to latest reports, the Dow Jones Industrial Average surged over 600 points, inching closer to the psychological 50,000 mark, while the Nasdaq Composite gained 1.34% and the S&P 500 posted steady gains of 1.12%. The rally was led by industrials and entertainment stocks, signaling renewed optimism in economic resilience. Advanced Micro Devices surged about 19% after upbeat results, reinforcing the growing impact of AI demand on market performance. The White House announced that Donald Trump's proposed drug pricing deals could save the US economy about $529 billion over 10 years, targeting lower prescription costs that currently exceed $450 billion annually.
The Indian stock market ended Wednesday's session on a positive note, with the Sensex closing 941 points higher at 77,958.52 and the Nifty 50 gaining 298 points to settle at 24,330.95. According to reports from Mint, the benchmark indices rallied over 1% each following reports that the US and Iran were close to reaching an agreement to end their conflict. During intraday trade, the Sensex surged more than 1,000 points to hit a high of 78,022.78, while the Nifty 50 climbed to the day's peak of 24,356.50. The rebound was fueled by easing geopolitical tensions, a decline in crude prices, and strong buying in financials, autos, and healthcare stocks. The rally was broad-based with the BSE Midcap index advancing 1.67% and the BSE Smallcap index gaining 1.77%, reflecting strong participation across broader markets.
The current market rally is being significantly supported by an exceptionally strong first-quarter earnings season, with over 63% of S&P 500 constituents having reported year-on-year earnings growth of over 27% while revenues were up more than 10% annually. As per recent reports, Advanced Micro Devices (AMD) added to the positive sentiment after reporting a strong set of numbers after the close, along with unexpectedly positive guidance for the second quarter. The stock was up 18% in after-hours trade, helping to lift Super Micro Computer by 16% and Micron Technology tacked on 6%. Both AMD and Micron Tech are now up 112% since the end of March, demonstrating the sustained momentum of AI-driven growth. The earnings performance has helped investors look past the ongoing US-Iran war, which is now in its tenth week with the Strait of Hormuz remaining closed to most shipping.
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 formed a positive hammer-like candlestick pattern indicating strong buying interest at lower levels. As reported by Mint, immediate support is placed in the 24,000–24,050 range, with resistance between 24,550 and 24,650 levels. The Relative Strength Index (RSI) stands at 55.41, moving above the midpoint of 50, indicating strengthening momentum and improving bullish sentiment. In the derivatives segment, notable call writing was seen at the 24,500 strike, followed by 24,600, while significant put writing was observed at 27,200 and 27,100 levels. The sharp rally also boosted investor wealth significantly, with the total market capitalisation of BSE-listed companies rising by nearly ₹6 lakh crore to ₹473 lakh crore, compared to just under ₹467 lakh crore in the previous session.
Commodity markets showed mixed but significant movements as geopolitical developments unfolded. Oil prices dropped sharply as hopes for a U.S.-Iran resolution improved market sentiment, with the news leading to an $8 drop in the price of a barrel of oil. Brent Crude fell to around $101–$103 per barrel, while West Texas Intermediate declined to nearly $93–$95 per barrel, marking losses of up to 8–10% in a single session. The decline was driven by optimism over a possible US-Iran peace deal and easing supply concerns. Copper prices climbed over 2.1% to around $13,410 per metric ton, hitting a near two-week high as hopes of a US-Iran deal lifted sentiment. Gold and silver prices moved sharply higher amid shifting global cues. Gold surged over 3%, trading near $4,700 per ounce, while MCX gold futures crossed ₹1.52 lakh per 10 grams. Silver jumped more than 6%, reaching around $77 per ounce, with the rally driven by a softer dollar, falling oil prices, and easing inflation concerns. However, the Strait of Hormuz remains effectively closed and oil prices continue to stay elevated despite the ceasefire, with fluctuations between $90 and $120 per barrel throughout April.
