Benchmark indices logged their sharpest single-day gains in nearly over a year on Wednesday, with both Sensex and Nifty surging close to 4% as investors cheered a ceasefire between the United States and Iran and a sharp fall in global crude oil prices.

The 30-share S&P BSE Sensex jumped 2,946 points, or 3.95%, to close at 77,562.90, while the broader NSE Nifty 50 rallied 874 points, or 3.78%, to settle at 23,997.35, reclaiming the 24,000 mark intraday.

The rally added nearly ₹15 lakh crore to investor wealth, marking a decisive shift in sentiment after weeks of volatility driven by geopolitical tensions.

Broad-based buying

The momentum was broad-based, with all sectoral indices closing in the green, reflecting strong risk appetite across the board. India VIX, which is the volatility index, fell 20.23% to close at 19.70.

Financials and banks led the rally, supported by easing bond yields. Auto and realty stocks surged on lower oil price expectations. Metals and infrastructure gained sharply amid improved global cues. Oil-sensitive sectors such as paints and aviation saw strong buying.

Midcap and smallcap indices also rose around 4% each, indicating participation beyond frontline stocks.

The only notable laggard was the IT sector, which remained subdued amid global growth concerns.

Top gainers on the Nifty 50 index include Shriram Finance, Tata Motors PV, Adani Enterprises, Eicher Motors, and IndiGo, while the top losers' list includes Coal India, Tech Mahindra, Nestle, Wipro and Sun Pharma.

Among index heavyweights, Larsen & Toubro surged over 7–8%, while IndiGo jumped up to 9–11% on expectations of lower fuel costs.

Ceasefire, Hormuz reopening trigger global rally

The rally was triggered by a two-week ceasefire between the US and Iran, along with the reopening of the Strait of Hormuz, a critical global oil shipping route.

The development led to a sharp drop in crude prices to below $100 per barrel, easing inflation concerns for oil-importing economies like India.

Global equities rallied in tandem, while the rupee strengthened sharply to end at 92.36 against the USD. Market participants said the rally reflects a classic geopolitical relief trade, with investors unwinding worst-case scenarios priced in over the past month.

Analysts cautioned that the sustainability of the upmove will depend on the durability of the ceasefire and the trajectory of oil prices in the coming weeks.