Markets rebound strongly, Sensex jumps 1900 points and Nifty gains over 500; rupee strengthens

Mumbai (The Uttam Hindu): The Indian stock market witnessed a strong rebound on Wednesday, driven by positive global cues and hopes of an early resolution to the US-Iran conflict in West Asia, boosting investor sentiment.

In early trade, the BSE Sensex surged by 1,899.53 points to reach 73,847.08, while the Nifty 50 jumped 572.55 points to 22,903.95. The Indian rupee also strengthened by 15 paise against the US dollar, trading at 94.70 in early trading.

All 30 Sensex stocks were trading in the green, with major gainers including Trent, Bharat Electronics, Adani Ports, Bajaj Finance, InterGlobe Aviation, and Larsen & Toubro. Positive remarks from US President Donald Trump, who indicated that the conflict could end within three weeks, along with statements from Iran’s President Masoud Pezeshkian expressing willingness to resolve the crisis, lifted global market sentiment.

Asian markets also showed strong gains. South Korea’s Kospi surged nearly 7 percent, Japan’s Nikkei 225 rose over 4 percent, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng also traded higher. On Tuesday, US markets rallied significantly, with the Nasdaq Composite gaining 3.83 percent, the S&P 500 rising 2.91 percent, and the Dow Jones Industrial Average advancing 2.49 percent.

The positive global trend was reflected in Indian markets, where buying dominated early trade. However, some caution persists as pressure remains on the US dollar and US Treasury bond yields continue to rise.

Meanwhile, crude oil prices remain elevated amid uncertainty surrounding the strategically important Strait of Hormuz. Brent crude has climbed above $105 per barrel, while West Texas Intermediate (WTI) is hovering around $103 per barrel.

The economic impact of the conflict is becoming evident globally. In the United States, average gasoline prices have crossed $4 per gallon for the first time in four years. In Europe, rising inflation has prompted governments to introduce relief measures and support packages.

The stock market was closed on Tuesday on account of Mahavir Jayanti. According to exchange data, foreign institutional investors (FIIs) sold shares worth ₹11,163.06 crore on Monday, while domestic institutional investors (DIIs) bought shares worth ₹14,894.72 crore. On Monday, the Sensex had fallen 1,635.67 points (2.22 percent) to close at 71,947.55, and the Nifty declined 488.20 points (2.14 percent) to settle at 22,331.40.