Good day for Indian equities: Sensex settles 700 points higher, Nifty gains 200 points

All major Asian markets, including India, gained on Wednesday as the ceasefire between Iran and Israel seemed to hold. This also led to European equities rising and US markets soaring closer to their all-time high.

In India, the BSE benchmark Sensex surged 700.40 points to settle at 82,755.51, and the NSE Nifty soared 200.40 points to 25,244.7 on close.

Japanese equity benchmark Nikkei 225 moved 0.4 per cent higher to 38,942.07, while Hond Kong’s Hang Seng index gained 1.2 per cent to 24,471.70. The Shanghai SSE Composite index rose by 1 per cent to 3,455.97, and South Korea’s Kospi gained just about 0.1 per cent to 3,108.25 on Wednesday.

Oil prices found their momentum, too, gaining 1 per cent on Wednesday despite slumping close to 6 per cent on Tuesday. International benchmark Brent crude inched 1.7 per cent higher to $67.30 a barrel.

However, the lower price trend could mean the US Federal Reserve could possibly cut interest rates to help the US economy, aligning with POTUS Donald Trump’s repeated calls for immediate rate cuts.

Tuesday in the US saw the S&P 500 climb 1.1 per cent and the Nasdaq index rally 1.4 per cent after the Middle East returned to what seems to be a ceasefire that would hold for now.

As global cues begin to ease, Indian equities rallied on Wednesday. In the 30-pack Sensex, Titan, Infosys, Mahindra & Mahindra, Airtel, TCS, Powergrid, and Tech Mahindra led the gainers. Only Bharat Electronics (BEL), Kotak Mahindra Bank, and Axis Bank were the losers in the index at close.

Major sectoral indices that gained were the Nifty IT, Nifty Auto, and the BSE Bankex. “Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices,” said Vinod Nair of Geojit Investments.

“While FIIs continue to withdraw capital, positive global cues are helping sustain domestic market momentum. Domestically, a favourable monsoon forecast and moderating inflation are further underpinning the optimism,” he added.

However, the global rally led to a strong dollar, as the rupee lost its gains against the US currency. It settled two paise lower to close at 86.07 vs the dollar. The strong equities markets, however, helped prevent further depreciation.

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