New Delhi: Dalal Street witnessed a wave of relief on Wednesday as markets surged following the announcement of a two-week ceasefire in the US-Israel-Iran conflict. Equity benchmarks opened sharply higher, with investors welcoming the respite from global geopolitical tensions.

The Sensex climbed 3.71%, gaining 2,775 points to hit an intra-day high of 77,392, while the Nifty surged 3.52%, trading at 23,938. Buying was broad-based, with auto, realty, banking, IT, and metal sectors leading the charge.

Sector & category highlights

  • Real estate, auto, banking, and pharma stocks rose up to 6%.
  • Smallcap and midcap indices outperformed, while largecaps also traded higher.
  • Market volatility softened as India VIX dropped 19%, reflecting eased investor anxiety.

Analysts cautioned that while the current rally is encouraging, volatility may continue due to ongoing geopolitical tensions and foreign fund outflows.

"Traders are advised to adopt a buy-on-dips or stock-specific approach, while maintaining strict risk management. Key sectors to watch include IT, banking, and oil-sensitive stocks, as volatility and global cues are likely to drive market direction in the near term," analysts said.

Global markets & oil reaction

Globally, Asian markets surged, with Nikkei up 5.60%, Hang Seng 3.08%, and KOSPI 6.36%. Meanwhile, Wall Street ended mostly flat; the S&P 500 rose 0.08%, and Nasdaq closed slightly lower by 0.03%.

Commodity markets reacted sharply. Oil prices plunged over 15%, with Brent crude falling $17.39 to $91.88 and WTI crude dropping $21.90 to $91.05, reflecting optimism over easing Middle East tensions.

On Tuesday, foreign institutional investors (FIIs) sold shares worth around ₹8,692 crore, while domestic institutional investors (DIIs) countered with inflows of ₹7,980 crore, showing strong local buying interest.

With IANS inputs