Indian shares rally on easing oil prices amid Iran de-escalation hopes
Mumbai— Indian equity benchmarks rose on Wednesday, joining a global market rally, as signals from the United States suggesting a possible de-escalation in the Iran conflict pushed crude oil prices lower and lifted investor sentiment.
The Nifty 50 gained 1.56% to close at 22,679.40, while the BSE Sensex advanced 1.65% to 73,134.32, marking a strong start to the new fiscal year after steep losses in March.Fourteen of the 16 major sectors ended higher, with broader markets outperforming.
The Nifty Smallcap 100 rose 3.3% and the Nifty Midcap 100 climbed 2.2%, reflecting renewed risk appetite among investors.Global equities also surged, with Asian markets posting their biggest one-day gain since November 2022 and Europe’s STOXX Europe 600 rising 2.1%, as easing geopolitical concerns buoyed sentiment.
Oil prices retreated, with Brent crude falling to around $103 per barrel after remarks by Donald Trump indicated a potential exit from the Iran conflict. Investors are now awaiting further updates in a scheduled address on Thursday.
“The markets are at levels where opportunities may emerge across sectors, though risks remain,” said Prateek Agrawal.
Indian equities had declined sharply in March, with both the Nifty 50 and Sensex falling more than 11% each, their steepest monthly losses in six years, as foreign investors pulled out a record $12.7 billion amid heightened geopolitical uncertainty.
Analysts said a resolution to the Middle East conflict could support the rupee and revive foreign portfolio inflows, reversing the trend seen in March after earlier buying in February.
Gains on Wednesday came despite higher domestic fuel prices, with retailers raising rates for jet fuel and commercial liquefied petroleum gas.
Shares of companies in sectors such as fertilisers, restaurants, tourism and rice exports led the advance as optimism over easing global risks outweighed cost concerns.
