Mumbai, April 1 – The benchmark indices Sensex and Nifty surged in early trading on Wednesday, driven by a sharp rally in global markets fueled by hopes of a potential de-escalation in the ongoing conflict in West Asia.
The 30-share BSE Sensex jumped by 1,899.53 points to 73,847.08 in early trading. The 50-share NSE Nifty rose by 572.55 points to 22,903.95.
All 30 Sensex-listed companies saw gains, with Trent, Bharat Electronics, Adani Ports, Bajaj Finance, InterGlobe Aviation, and Larsen & Toubro being the top performers.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, China's SSE Composite index, and Hong Kong's Hang Seng index all saw significant gains. The Kospi rose by nearly 7%, while the Nikkei 225 index climbed by over 4%.
"The statements issued by Iranian authorities indicate a potential de-escalation in the war. The Iranian president's statement about being 'open to ending the war' and confirmation from the Iranian foreign minister that 'messages were exchanged with the US' suggest that the war might end soon. This is reflected in the decline in crude prices and US bond yields," said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
The US market ended significantly higher on Tuesday. The Nasdaq Composite index rose by 3.83%, the S&P 500 jumped by 2.91%, and the Dow Jones Industrial Average climbed by 2.49%.
"The momentum is largely driven by a significant improvement in global risk sentiment, following encouraging signals around a potential de-escalation in the ongoing conflict in West Asia," said Hariprasad K, Research Analyst and Founder, Livelong Wealth.
Brent crude, the global oil benchmark, traded 1.29% higher at USD 105.3 per barrel.
Stock markets were closed on Tuesday for Shri Mahavir Jayanti.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 11,163.06 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 14,894.72 crore.
On Monday, the Sensex tumbled by 1,635.67 points or 2.22% to settle at 71,947.55. The Nifty slumped by 488.20 points or 2.14% to end at 22,331.40.