Domestic equity markets surged on Wednesday, with benchmark indices logging their highest close in over a month, as softer crude oil prices and optimism around renewed US–Iran peace talks lifted investor sentiment.
The benchmark Sensex rose 1,264 points, or 1.6 per cent, to settle at 78,111, while the Nifty 50 gained 389 points, or 1.6 per cent, to close at 24,231. Both indices recorded their strongest single-day gain since April 8 and their highest closing levels since March 10, 2026.
The total market capitalisation of BSE-listed companies increased by ₹9.4 trillion to ₹458.5 trillion ($4.91 trillion).
The decline in crude oil prices boosted risk appetite. Brent crude prices were trading at $ 92.08, a decline of 0.6 per cent. The drop in oil prices — a key positive for import-dependent India — followed rising expectations of renewed diplomatic engagement between the United States and Iran.
US President Donald Trump, in separate interactions with media outlets, indicated that talks could resume within the next two days and suggested the conflict could be nearing an end. This raised hopes of a potential de-escalation in the Iran–Israel conflict, which has disrupted flows through the Strait of Hormuz — a critical route handling nearly a fifth of global oil supply.
After a sharp slump in March, the markets have staged a strong rebound so far this month.
The Sensex and the Nifty have rallied 8.5 per cent this month, while the Nifty Midcap 100 and the Nifty Smallcap 100 has surged 11.6 per cent and 12.8 per cent, respectively.
“Markets tend to price in the best-case scenario, even if it may not eventually play out. The current optimism reflects fatigue after seven to eight weeks of decline amid persistent negative news flow. Any positive trigger is therefore being quickly embraced,” said UR Bhat, co-founder of Alphaniti Fintech.
Mid- and small-cap indices have recovered all losses incurred during the US–Iran conflict, but benchmark indices still remain about 4 per cent below their pre-war levels.
Going ahead, the trajectory of peace negotiations and the upcoming corporate earnings season are likely to guide market direction.
“Despite a muted Q4 outlook, investors are encouraged by attractive valuations and a relatively stronger FY27 earnings visibility, suggesting the rally could sustain in the near term. The decline in India’s 10-year bond yield and easing in India VIX also indicate improving stability. Sectorally, resilient demand expectations supported gains in power and consumer durables, while easing global risk sentiment aided IT outperformance,” said Vinod Nair, Head of Research at Geojit Investments.
Market breadth remained robust, with 3,547 stocks advancing against 836 declines. Broader markets outperformed, with the Nifty Midcap 100 rising 2.2 per cent and the Nifty Smallcap 100 gaining 2.35 per cent. All sectoral indices ended in the green, led by consumer durables, which advanced 2.9 per cent.
Among Sensex constituents, all but two stocks ended higher. HDFC Bank, up 1.97 per cent, contributed the most to the index’s gains, followed by Reliance Industries, which rose 2.3 per cent. InterGlobe Aviation (IndiGo) was the top gainer, climbing 4.6 per cent, while Larsen & Toubro advanced 3.08 per cent.
Foreign Portfolio Investors (FPIs) were net buyers of Rs 666 crore, while domestic institutions were net sellers of Rs 569 crore.
