Mumbai: Indian equity markets opened on a strong note on Wednesday, with both benchmark indices rallying sharply amid easing geopolitical concerns after signals of a possible de-escalation in tensions between the United States and Iran.
Investor sentiment improved after US President Donald Trump indicated that the conflict with Iran could be nearing its end, raising hopes of stability in global markets.
During early trade, the Nifty surged 1.61 per cent, or 392.75 points, to trade at 24,237.70. The Sensex also climbed 1.70 per cent, or 1,303 points, to 78,150.54.
Commenting on Nifty technical outlook, market experts said that the immediate support is seen at 23,900–24,000, while resistance is placed at 24,250–24,300.
Market volatility cooled significantly, with the Nifty India Volatility Index dropping 15.4 per cent to 17.34 soon after the opening bell.
The sharp decline in the volatility gauge suggests that traders expect reduced uncertainty in the near term.
Broader markets outperformed the frontline indices, with the Nifty MidCap and Nifty SmallCap indices rising 2.09 per cent and 2.10 per cent, respectively.
On the sectoral front, PSU banks and IT stocks led the gains, while the pharma sector lagged behind and emerged as the worst performer in early trade.
Meanwhile, crude oil prices also eased in the Asian session, adding to the positive sentiment. Brent crude futures for the April contract slipped 0.36 per cent to $94.45 per barrel, as hopes grew that any potential disruption at the Strait of Hormuz could be avoided with progress in US-Iran talks.
Analysts said that the combination of easing geopolitical tensions, cooling oil prices, and declining volatility provided a strong boost to investor confidence, pushing Indian equities higher in early trade.
“Given the improving undertone supported by recent recovery patterns, yet amid ongoing global uncertainties and elevated volatility, investors are advised to remain disciplined and selective on April 15,” an analyst stated.
(IANS)
