Equity benchmarks extended their sharp rebound for a second consecutive session on Wednesday, with benchmark indices surging nearly 2%, as easing crude oil prices and hopes of de-escalation in the West Asia conflict buoyed sentiment.

The Sensex rallied 1,205 points to close at 75,273.45, while the Nifty 50 jumped 394 points to settle at 23,306.45, marking a strong recovery after the recent sell-off.

Two-day rebound after steep fall

The latest gains come on the back of a strong bounce on Tuesday, when markets had already staged a relief rally after Monday’s sharp correction.

Over the past two sessions, the Sensex has recovered over 2,500 points, while the Nifty has rebounded by over 3–4%, indicating a swift reversal in sentiment after heightened geopolitical concerns had triggered a ₹14 lakh crore market wipe out on Monday.

Oil cools, easing macro concerns

A key driver of the rally has been the sharp correction in crude oil prices.

Brent crude, which had surged above $110 per barrel amid fears of supply disruptions through the Strait of Hormuz, has stayed below the $100 mark ever since U.S. president Donald Trump announced a five-day halt in the planned strikes on Iranian energy infrastructure. On Wednesday, Brent slipped over 6% to an intraday low of $93.46 during the Indian market trading hours.

Geopolitical signals support sentiment

Expectations of a potential de-escalation in the ongoing U.S.-Iran tensions boosted investor sentiments even as conflicting signals from Tehran have kept uncertainty elevated. Nonetheless, markets have reacted positively to the perceived easing of immediate risks.

Global cues remained supportive, with US equity futures and Asian markets trading higher, further aiding the domestic rally.

Broad-based buying across sectors

The rally was broad-based, with gains seen across sectors.

Rate-sensitive stocks led the up movement, while metal and capital goods stocks rebounded sharply after recent losses. IT stocks displayed mixed performance with HCL Tech, Wipro and Coforge showing strong gains even as TCS and Tech Mahindra faced selling pressure.

Top gainers on Nifty 50 index include Shriram Finance, Titan, Grasim, UltraTechCement, L&T, and Bajaj Finance, while the top losers include Tech Mahindra, Powergrid Corp, TCS and Bharat Electronics.