Sensex, Nifty rally 4%: Rs 14.20 lakh cr added in investors wealth; top market gainers

Indian equity benchmark indices opened on a positive note on Wednesday after the US-Iran announced a two-week ceasefire, easing the geopolitical tensions adding trillions of rupees to investors' pockets. The sharp fall in the crude oil prices also supported the investor sentiments at Dalal Street.

BSE Sensex surged nearly 2,800 points, or 3.8 per cent to hit day's high at 77,392.31, while NSE's Nifty50 zoomed more than 815 points, or 3.5 per cent, to hit 23,938.85 in the first 10 minutes of opening bell. BSE midcap and smallcap indices soared 2.5-3 per cent each, while the fear gauge India VIX tanked nearly 20 per cent to slipe below 20-levels.

The total market capitalization of the all BSE-listed companies jumped to Rs 442.97 lakh crore in the initial few minutes, adding a notional wealth of Rs 14.20 lakh crore in investors' kitty. The total marketcap of all companies stood at Rs 428.77 lakh crore as of Tuesday's close. Investors' wealth has increased by Rs 28.5 lakh crore from war lows at Rs 414.52 lakh crore on March 23.

The ceasefire announcement is a clear near-term positive for financial markets as it temporarily pulls the world back from the most critical risk—disruption in the Strait of Hormuz. For global markets, this translates into easing inflation expectations, softer bond yields and improved risk appetite across equities, said Harshal Dasani, Business Head at INVasset PMS.

"Stabilisation in shipping routes or freight costs directly supports macro stability by easing imported inflation and reducing pressure on the rupee. However, this should be viewed as a temporary reprieve rather than a structural resolution. The ceasefire is limited to two weeks, safe passage remains conditional, and negotiations are still evolving," he added.

Among the BSE Sensex stocks, HDFC Bank and ICICI Bank contributed more than 750 points in the rally, followed by Larsen & Toubro, Reliance Industries and Axis Bank. In the percentage terms, L&T zoomed more than 7 per cent, while banking majors rose 4-5 per cent each. Reliance soared nearly 3 per cent in the early trade.

Among the top 1000 companies, SEPC jumped more than 13 per cent, while BLS International surged nearly 11 per cent. NACL Industirs, Ashok Leyland and InterGlobe Aviation (IndiGo) jumped 10 per cent each. PNC Infra, DCB Bank, Prestige Estates, Gallantt Ispat and Yatra Online were up 9 per cent each.

A ceasefire between the US and Iran has helped restore risk appetite across global markets, reducing the immediate uncertainty. The near-term narrative shifts toward a more constructive tone, with the potential for broad-based buying interest, majorly in sectors that had come under pressure amid elevated oil prices and geopolitical concerns, said Ponmudi R, CEO at Enrich Money.