Mumbai, April 1 – Domestic stock markets opened sharply higher on Wednesday, with a significant gap-up, tracking positive cues from the US and Asian markets amid hopes for de-escalation in the West Asia conflict, which is now in its 33rd day.
The 50-scrip Nifty opened at 22,899, rising by 567 points or 2.54 percent, while the Sensex began the day up by 1,814 points, or 2.52 percent, at 73,762.43.
Sector-wise, all indices traded in positive territory, led by gains in banking, auto, and IT stocks. The broader indices also showed strong momentum, with mid-cap and small-cap indices advancing by over 2-3 percent.
US President Donald Trump has indicated that the American military could halt attacks on Iran within the next three weeks. He also stated that Tehran may not need to strike a deal as a precondition for the conflict to end. On the other hand, Iran has warned that prominent American corporations could face retaliation if Iranian figures continue to be killed.
Notably, headline indices had declined by more than 10 percent during March amid heightened geopolitical tensions.
According to analysts, given ongoing global uncertainties and elevated volatility, investors should adopt a cautious and selective approach.
"It may be prudent to accumulate fundamentally strong stocks during market corrections," analysts said.
They added that fresh long positions should ideally be initiated only after the Nifty decisively breaks above and sustains the 24,000 level, which would signal improved sentiment and a more durable bullish trend.
Auto stocks are expected to remain in focus as companies release their sales numbers.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 11,163 crore on Monday, extending their selling streak through March. In contrast, domestic institutional investors (DIIs) bought equities worth Rs 14,894 crore.
Globally, Wall Street ended on a mixed note, with the S&P 500 closing about 3 percent lower, while the Nasdaq gained nearly 4 percent.
In Asia, Japan’s Nikkei traded over 4 percent higher, Hong Kong’s Hang Seng rose more than 2 percent, and South Korea’s KOSPI surged over 6 percent.
In the commodities segment, crude oil prices edged higher. Brent crude futures rose 1.81 percent to $105.86 per barrel, while US West Texas Intermediate (WTI) futures were up 1.90 percent at $103.31.
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