Markets cheer ‘peace signals’: Sensex jumps, oil crashes; but is this rally real?

Indian equity markets opened firmly higher on Wednesday, extending gains for a second straight session as hopes of easing tensions in West Asia lifted sentiment. Fresh chatter about a possible US–Iran ceasefire, along with hints of quiet backchannel talks, gave investors a reason to step in early and buy.

The positive start comes even as markets globally remain on edge, with traders keeping a close watch on every signal that suggests the conflict could ease. Expectations of reduced conflict also pulled down crude oil prices sharply, adding to the positive mood on Dalal Street.

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The BSE Sensex began the session with gains of nearly 600 points, while the NSE Nifty opened above the 23,000 mark. Buying momentum strengthened in early trade, pushing the Sensex up by over 770 points to touch an intraday high of 74,840. The Nifty also climbed around 1 per cent to cross 23,170 levels.

Auto, realty stocks lead rally; IT lags

Most sectoral indices traded in positive territory, led by realty, auto, and media stocks. The Nifty Auto index rose about 1.47 per cent, while realty and media stocks also saw strong buying interest. Metal stocks, PSU banks and financial services shares registered gains of over 1 per cent.

However, the IT sector remained under pressure, emerging as one of the few laggards in an otherwise positive market. Broader markets mirrored the trend, with mid-cap and small-cap indices also rising around 1 per cent each.

Market experts cautioned that while global cues are supportive for now, uncertainty has not fully eased. Ajay Bagga, a banking and market expert, told news agency ANI that markets are reacting to “slender threads of optimism” around potential peace moves, even as the situation on the ground remains fluid. He noted that continued tensions and troop movements could keep volatility high in the near term.

Analysts said stock-specific action may dominate going ahead and advised investors to remain selective. They added that a sustained rally would depend on key resistance levels being crossed, warning that a sell-on-rise strategy could still prevail if momentum fades.

Oil slides, Asian markets rally; US markets end lower

Global cues remained mixed. Crude oil prices dropped sharply on hopes of a ceasefire, with Brent crude falling to near $97 per barrel and US WTI also declining significantly. Lower oil prices offered some relief to global markets.

Asian markets traded strongly in the green, with Japan’s Nikkei, South Korea’s KOSPI and Hong Kong’s Hang Seng posting notable gains. US markets, however, had a weak close in the last session, with both the S&P 500 and Nasdaq ending in the red.

Even with today’s gains, investors are not letting their guard down, as the situation around the conflict continues to shift.