Mumbai, March 25 The benchmark indices, Sensex and Nifty, continued their rally from the previous session in the early trading on Wednesday, driven by a sharp decline in crude oil prices and a positive trend in Asian markets, amid hopes of de-escalation in the West Asia conflict.
The 30-share BSE Sensex jumped by 885.32 points to 74,953.77 in the early trading. The 50-share NSE Nifty surged by 307.65 points to 23,220.05.
Among the 30 Sensex-listed companies, Mahindra & Mahindra, UltraTech Cement, Adani Ports, HDFC Bank, Trent, and Eternal were the top gainers.
Tech Mahindra and Infosys were the laggards.
Brent crude, the global oil benchmark, fell by 4.34 per cent to USD 99.95 per barrel.
In Asian markets, the benchmark Kospi of South Korea, the Nikkei 225 index of Japan, the SSE Composite index of Shanghai, and the Hang Seng index of Hong Kong were trading in positive territory.
The US market ended lower on Tuesday.
"Asian markets traded higher, supported by comments from (US President) Donald Trump suggesting the possibility of negotiations between the United States and Iran. This potential for diplomatic engagement has provided some relief to global investors, raising hopes for a de-escalation in Middle East tensions," said Hariprasad K, Research Analyst and Founder, Livelong Wealth.
However, conflicting signals from Iran, which has denied any formal talks, suggest that the situation remains fluid, potentially limiting the durability of this optimism, he added.
Foreign Institutional Investors (FIIs) sold equities worth Rs 8,009.56 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,867.15 crore.
"Hope is returning to the market with indications of de-escalation in the conflict. Remarks from President Trump and from the Iranian regime indicate that the conflict might end soon. Particularly, the reiteration from Iran that 'non-hostile ships can transit the Strait of Hormuz' is good news that will mitigate India's energy concerns," said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
"These positive geopolitical developments have reflected in a sharp decline in Brent crude to around USD 98," he added.