Indian equities witnessed a blockbuster session Wednesday, as the BSE Sensex vaulted 2,800 points to an intraday peak of 77,456.11, while Nifty surged 800+ points to 23,961.25—both up around 4%. The euphoria spread to mid and smallcaps, gaining identically and boosting overall market breadth.
Market cap of BSE companies swelled by 15 lakh crore to 444 lakh crore, enriching investors overnight. Volatility gauge India VIX nosedived 19% under 20, reflecting diminished panic.
Geopolitics stole the show: Trump’s US-Iran ceasefire declaration paused hostilities for two weeks, accepted by Tehran, with talks slated for Friday. This de-escalation in West Asia triggered a 14% Brent crude plunge below $95/bbl, relieving India’s import bill and easing inflationary pressures for stronger economic tailwinds.
Dollar’s 1%+ drop fortified the rupee, enticing FPIs. Bullish Asian cues from Japan and South Korea’s 6% jumps fueled the fire. RBI’s decision to maintain repo at 5.25% under ‘neutral’ policy, unanimously endorsed by MPC after deliberations, met forecasts and anchored expectations.
Analysts hail this as a relief rally, driven by risk-off unwind, but warn of profit booking risks. With falling oil and stable policy, India’s markets eye new highs, underscoring investor faith in domestic fundamentals amid global flux.
