Mumbai: Indian equity markets opened on a strong note on Wednesday, buoyed by easing geopolitical tensions and a sharp decline in global oil prices following a ceasefire understanding between the United States and Iran.
At the opening bell, the BSE Sensex surged by around 2,600 points, while the Nifty 50 rallied nearly 700 points, reflecting renewed investor confidence after days of volatility.
The rally was largely driven by a drop in crude oil prices, which slipped below the $100 per barrel mark after Iran agreed to allow safe passage through the Strait of Hormuz. The development followed an announcement by Donald Trump that Washington would pause military operations against Iran for two weeks, offering a temporary breather to global markets.
Lower oil prices are seen as a positive signal for import-dependent economies like India, helping ease inflation concerns and improve macroeconomic stability. The easing of tensions also encouraged buying across sectors, with investors returning to equities after recent sell-offs.
However, market participants remain cautious ahead of the Reserve Bank of India’s policy decision due later in the day. The central bank’s stance on interest rates and its outlook on inflation are expected to play a key role in shaping near-term market direction.
In the commodities segment, precious metals witnessed a slight dip. Gold prices edged lower, while silver also recorded a marginal decline in early trade, reflecting reduced demand for safe-haven assets as risk sentiment improved.
Analysts suggest that while the ceasefire has lifted immediate concerns, markets will continue to track geopolitical developments and domestic policy cues closely.
