Stock market today: Sensex zooms 1,899 pts, Nifty tops 22,900; Trent shares up 6%

After a brief pause on Tuesday for Mahavir Jayanti, the domestic benchmark indices Sensex and Nifty rallied in early trade on Wednesday, tracking positive cues from global markets and emerging signs of easing tensions in West Asia.

At 9:19 am, the BSE Sensex surged 1829.93 points, or 2.54%, to 73,777.48, rising as much as 1899 points in early trade. The NSE Nifty jumped 550 points, or 2.46%, to 22,881.40, briefly touching a high of 22,902.25.

Among Sensex constituents, Trent gained 5.93% to Rs 3489.95. Bharat Electronics (BEL) jumped 4.26%, while Bajaj Finance, L&T and IndiGo were up 3.79%, 3.73% and 3.73%, respectively.

The Iranian president's 'openness to ending the war' and confirmation from the Iranian foreign minister that'messages were exchanged with the US' suggest that the war may end soon, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

“This view is getting reflected in declines in crude prices and US bond yields. The market might start discounting de-escalation earlier than the event,” Vijayakumar added.

Broader Asian markets traded higher. Japan’s Nikkei 225 surged 4.04% to 53,128.33, while South Korea’s Kospi gained 6.64% to 5,387.87, and Hong Kong’s Hang Seng jumped 2.23% to 25,341.37. 

Wall Street ended higher overnight, with all three major indices closing in the green. The S&P 500 jumped 2.91% to close at 6,528.52, while the Dow Jones Industrial Average surged 2.49% to settle at 46,341.51. The Nasdaq Composite zoomed 3.83% to 21,590.63.

Given the ongoing global uncertainties and increased volatility, investors should take a cautious and selective approach, said Hitesh Tailor, research analyst at Choice Equity Broking Private Ltd. “It may be wise to accumulate fundamentally strong stocks during market corrections.”

“Fresh long positions should preferably be initiated only after the Nifty convincingly breaks above and sustains the 24,000 level, which would indicate improved sentiment and the likelihood of a more durable bullish trend," Tailor said.

In the previous session on Monday, the Sensex plunged 1,635.67 points, or 2.22 per cent, to settle at 71,947.55, while the 50-pack index declined 488.20 points, or 2.14 per cent, to end at 22,331.40.