After hovering in the red, the Sensex jumped around 941 points to close at 77,958. The Nifty 50, meanwhile, surged around 298 points to close at 24,331. The sharp gains added more than Rs 6 lakh crore to the total market capitalisation of all companies listed on the BSE, pulling it up to Rs 473 lakh crore.
Here are the key factors boosting markets today.
1) Iran-US war resolution hopes
Investors increasingly expect an early resolution to the ongoing conflict between Iran and the US in the oil-rich Middle East after US President Donald Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress towards a comprehensive agreement with Iran.
Taking to Truth Social, Trump said he made the decision “based on the request of Pakistan”, which has acted as an intermediary between the US and Iran. He added that the US blockade of Iranian ports would, however, remain in place.
US Secretary of State Marco Rubio, meanwhile, said that the country has achieved its objectives in its military campaign against Iran, despite not yet securing Tehran’s enriched uranium, and that the effort to ensure safe passage for oil transit in the Strait of Hormuz is a separate, smaller, defensive operation.
2) Oil prices cool down below $110 per barrel
Oil prices dropped as a result of the latest hopes for a sooner end to the ongoing conflict in the Middle East. Brent crude futures declined around 2% to $108 per barrel and WTI crude futures dropped 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. While oil prices have cooled from record-high levels, they still remain above the $100 per barrel mark, after crossing the level following the onset of the conflict earlier this year.
3) Rupee rises
After an incessant free fall, the Indian rupee opened 0.26% higher at 95.03 against the US dollar, compared with the previous closing level of 95.28. The currency had dropped to a fresh all-time low on Tuesday as oil prices soared and FIIs continued their selling streak on Dalal Street.
“In the near term, 94.70 is likely to act as resistance, while 95.50 is seen as immediate support, with markets closely tracking US non-farm payrolls and unemployment data this week for further direction,” said Jateen Trivedi, VP, Research Analyst – Commodity and Currency, LKP Securities.
4) Global markets rally
Global markets rallied sharply, with South Korea’s Kospi surging as much as 7%. Notably, the market capitalisation of Samsung Electronics’ common stock surpassed $1 trillion on Wednesday, making it the second Asian company after TSMC to reach the milestone. China’s Shanghai Composite and Hong Kong’s Hang Seng were up around 1% each.
Wall Street hit fresh record highs on Tuesday, with the S&P 500 and Nasdaq indices closing nearly 1% higher. In Europe, Germany’s DAX jumped nearly 2%, France’s CAC gained over 1%, but the UK’s FTSE dropped 1.4%.
5) Strong earnings
On the domestic front, investors are increasingly looking at strong earnings from some of the heavyweight players. Today’s Sensex top gainer, Mahindra & Mahindra, beat analysts’ estimates by reporting a 42% surge in consolidated net profit to Rs 4,668 crore for the fourth quarter of FY26.
On Wall Street, the tech rally was supported by strong earnings. “Recent earnings across technology and broader sectors continue to support the rally in US equities. Market focus this week remains on results from major companies including Disney and Uber, while NVIDIA’s Q1 earnings later this month remain a key event for global markets,” said Bajaj Broking.
Why some caution is warranted
Despite the renewed optimism, some caution is warranted. FII investors remained net sellers of Indian equities, net selling shares worth more than Rs 3,621 crore on Tuesday. US bond yields also inched up slightly.
Technically, market sentiment is cautiously bullish, but a sustained daily close of Nifty above 24,250 is needed to extend the rally towards 24,350–24,450, said Rajesh Palviya, Head of Research, Axis Direct. “If 23,900 is not held, the index could test the 23,800–23,700 zone,” he added.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
