Stock market, US-Iran ceasefire: Sensex zooms 2,775 pts, Nifty above 23,900; IndiGo shares up 10%

Domestic benchmark indices Sensex and Nifty opened higher on Wednesday, extending their uptrend for a potential fifth straight session, as positive global cues lifted sentiment. The rally tracked gains across Asian markets after the announcement of a two-week ceasefire between the US and Iran, easing oil prices and geopolitical concerns.

At 9:18 am, the BSE Sensex zoomed 2617.08 points, or 3.51%, to 77,233.66, rising as much as 2,775 points in early trade. The NSE Nifty jumped 764.05 points, or 3.30%, to 23,887.70, briefly touching a high of 23,938.85.

Among Sensex constituents, Interglobe Aviation (IndiGo) surged 9.68% to Rs 4681.35. L&T gained 7.39%, while Adani Ports, Bajaj Finance and UltraTech Cement advanced 5.98%, 4.99% and 5.22%, respectively.

The announcement of a two-week pause has significantly reduced immediate concerns about energy supply disruptions, which had been a major overhang on global markets, said Hariprasad K, SEBI-registered research analyst and founder at Livelong Wealth.

Broader Asian markets jumped today. Japan’s Nikkei 225 soared 4.96% to 56,078.83, while South Korea’s Kospi advanced 5.97% to 5,823, and Hong Kong’s Hang Seng rallied 2.74% to 25,804.85. 

“This ceasefire, particularly the agreed reopening of Hormuz Strait, will embolden the bulls to charge again, aided by the fair market valuations,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

Wall Street ended mixed overnight, with two of three major indices closing in the green. The S&P 500 edged up 0.08% to settle at 6,616.85, while the Dow Jones Industrial Average declined 0.18% to settle at 46,584.46. The Nasdaq Composite climbed 0.01% to 22,017.85.

“However, sustainability will depend on follow-through buying and clarity on geopolitical developments, keeping the broader tone cautiously optimistic,” Hariprasad added.

In the previous session on Tuesday, the Sensex gained 509.73 points, or 0.69%, to settle at 74,616.58, while the Nifty advanced 155.40 points, or 0.68%, to close at 23,123.65.