Mumbai: Stock markets closed nearly 2 per cent higher on Wednesday, with the Sensex and Nifty rallying in tandem with global peers amid hopes of de-escalation in the West Asia conflict.
Starting the new fiscal year on a high note, the 30-share BSE Sensex jumped 1,186.77 points or 1.65 per cent to settle at 73,134.32. During the day, it surged 2,017.03 points or 2.80 per cent to 73,964.58.
Snapping its two-day falling streak, the 50-share NSE Nifty climbed 348 points or 1.56 per cent to end at 22,679.40.
A drop in crude oil prices also boosted the market sentiment.
From the 30-Sensex firms, Trent, InterGlobe Aviation, Adani Ports, Bharat Electronics, State Bank of India and Eternal emerged as the major gainers.
NTPC, Sun Pharma, Power Grid, UltraTech Cement and Bharti Airtel were the laggards.
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended sharply higher. Kospi jumped 8.44 per cent, while Nikkei 225 index climbed 5.24 per cent.
Markets in Europe were trading in positive territory.
“Indian equity markets opened the new financial year on a positive note, with stocks soaring on fresh optimism surrounding a potential de-escalation of the Middle East conflict and easing of energy supply disruptions,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
President Trump’s remarks that the US could withdraw from Iran “whether we have a deal or not” within the next two to three weeks provided the catalyst markets had been waiting for, delivering a broad wave of relief across global risk assets, Ponmudi added.
Sectorally, BSE Services surged 4.99 per cent, followed by PSU Bank (3.66 per cent), Industrials (3.40 per cent), Capital Goods (3.29 per cent), MidSmall Private Banks Quality Tilt (3.07 per cent), Consumer Discretionary (2.79 per cent), Commodities (2.72 per cent) and IT (2.40 per cent). BSE Healthcare emerged as the only laggard.
A total of 3,828 stocks advanced while 508 declined and 101 remained unchanged on the BSE.
The US market ended significantly higher on Tuesday. The Nasdaq Composite index surged 3.83 per cent, S&P 500 jumped 2.91 per cent and Dow Jones Industrial Average climbed 2.49 per cent.
“Indian equity markets opened FY27 on a strong note, driven by improving risk appetite following US President Donald Trump’s remarks hinting at a potential resolution to the West Asia conflict,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Stock markets were closed on Tuesday for Shri Mahavir Jayanti.
FIIs offloaded equities worth Rs 11,163.06 crore on Monday. DIIs, however, bought stocks worth Rs 14,894.72 crore, according to exchange data. On Monday, the Sensex tumbled 1,635.67 points or 2.22 per cent to settle at 71,947.55. The Nifty slumped 488.20 points or 2.14 per cent to end at 22,331.40.