Mumbai, April 8 – Dalal Street experienced a significant boost on Wednesday, with equity benchmarks opening sharply higher, jumping more than 3 per cent each after both sides announced a two-week ceasefire in the US-Israel-Iran conflict.
The Sensex climbed as high as 3.71 per cent, or 2,775 points, to 77,392, hitting an intra-day high in the early trading hours. Similarly, the Nifty traded at 23,938, up 3.52 per cent or 815 points, from the previous close, amid buying in stocks from the auto, real estate, banking, IT, and metal sectors.
All sectors witnessed a rebound and traded in positive territory. Specifically, real estate, auto, banking, and pharmaceutical stocks saw gains of up to 6 per cent.
In terms of market capitalization, small-cap and mid-cap indices were the top performers, while large-cap stocks also saw gains. Meanwhile, the India VIX declined by 19 per cent.
Traders and investors will also be closely monitoring the outcome of the Reserve Bank of India's MPC later in the day.
On Tuesday, Foreign Institutional Investors (FIIs) remained net sellers, withdrawing approximately Rs 8,692 crore, while Domestic Institutional Investors (DIIs) continued their strong buying trend, with inflows of around Rs 7,980 crore.
According to analysts, volatility is likely to persist due to ongoing geopolitical concerns and continued 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," the analysts said.
US President Donald Trump stated that "subject to Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for two weeks. This will be a mutual ceasefire."
Globally, Asian and US markets showed positive trends.
In Asian markets, the Nikkei advanced by 5.60 per cent, the Hang Seng traded 3.08 per cent higher, and the KOSPI was up 6.36 per cent at intraday highs as of around 9:10 am.
Wall Street ended on a flat note, with the S&P 500 closing at 6,616, up 0.08 per cent or 5 points, while the Nasdaq settled 0.03 per cent, or 5.59 points, lower at 21,990.
In contrast, oil commodities traded at substantially lower levels, declining over 15 per cent. Brent crude futures plummeted by 15.91 per cent, or $17.39, to $91.88, hitting an intraday low, while US WTI crude fell by about 20 per cent, or $21.90, to $91.05.
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