India's stock market surged for a second consecutive session, joining a broader Asian relief rally as signs of a Iran war ceasefire sent crude oil prices tumbling below the $100-per-barrel.
The 30-share S&P BSE Sensex climbed as much as 1,161 points, or 1.57%, to 75,230.06 in morning trade, while the wider NSE Nifty 50 rose 1.6% to cross the 23,200 mark.
The rally was broad-based, with 15 of the 16 major sectoral indices logging gains. Small-cap and mid-cap stocks outperformed the benchmarks, rising 2.7% and 2.2%, respectively.
The primary catalyst for the risk-on sentiment was a reported shift in US foreign policy. On Tuesday, President Donald Trump indicated that progress is being made toward a negotiated settlement in the Middle East.
Brent crude, the international benchmark, slumped 4.4% to trade near $99.89 per barrel.
For India, which imports more than 80% of its oil requirements, the retreat in energy prices acts as a massive tailwind for corporate margins and fiscal stability.
“Hope is returning to the market with indications of de-escalation in the conflict. Remarks from Trump and from the Iranian regime indicate that the conflict might end soon,” V.K. Vijayakumar, chief investment strategist at Geojit Investments, said in an email.
Despite the optimism, some analysts urged caution. While Tehran has indicated that “non-hostile ships” can transit the critical Strait of Hormuz, Iranian officials have officially denied that direct talks are currently underway.
