Sensex Surges 888 Points to Close at 77,654 Despite US-Iran Tensions
- Sensex surged 888 points to close at 77,654, Nifty ended at 24,250.
- IT stocks and Hindustan Unilever led the rally, shrugging off US-Iran tensions.
- Markets rebounded from recent losses, driven by broad-based buying across sectors.
Indian equity benchmarks staged a sharp recovery on Wednesday, with the BSE Sensex jumping 888 points to close at 77,654, defying fresh geopolitical tensions between the United States and Iran. The broader Nifty50 index ended the session at 24,250, reflecting strong buying interest across sectors.
Sensex Opens Strong, Extends Gains Through Session
The day began with the Sensex opening 658 points higher, setting a positive tone from the start. Buying momentum only gathered steam as the session progressed, pushing the benchmark to a gain of over 1,000 points intraday before settling at the final figure of 77,654.
The rally was broad-based, with heavyweights from information technology and consumer goods leading the charge. Hindustan Unilever and Infosys emerged as top gainers on the Sensex, contributing significantly to the index's surge.
Geopolitical Concerns Take a Back Seat
The rebound came despite escalating tensions between the US and Iran, which had rattled global markets in recent sessions. Analysts noted that Indian markets appeared to have priced in the immediate risks, with domestic fundamentals taking precedence.
Market participants pointed to strong corporate earnings from key sectors and expectations of continued foreign portfolio investment as underlying supports. The IT sector, in particular, saw robust buying on hopes of steady demand from US clients.
Nifty Holds Above 24,250; Sectoral Indices in Green
The Nifty50's close at 24,250 marked a decisive break above its recent trading range. All major sectoral indices ended in positive territory, with the Nifty IT index surging over 2% and the Nifty FMCG index also posting solid gains.
Midcap and smallcap stocks joined the rally, indicating broad market participation. Volatility, as measured by the India VIX, eased during the session, suggesting reduced investor anxiety despite the geopolitical backdrop.
What Drove the Rally
Traders attributed the sharp upmove to a combination of short covering ahead of monthly derivatives expiry and value buying after recent declines. The Sensex had fallen over 1,500 points in the previous two sessions, making valuations attractive for many institutional investors.
Foreign portfolio investors turned net buyers in the cash market, adding further momentum. Domestic institutional investors also remained active, supporting the recovery with consistent purchases.
Looking ahead, market focus will shift to global cues, particularly developments in US-Iran relations and upcoming economic data from the US. Traders will also watch the monthly derivatives expiry scheduled for Thursday, which could bring heightened volatility as positions are rolled over.