Sensex surges over 1,200 points, Nifty reclaims 24,200 on hopes of U.S.-Iran talks; IndiGo, L&T, TCS lead rally

Indian equity market saw strong opening on Wednesday, in sync with Asian peers, as sentiment was lifted by hopes of resumption of U.S.-Iran talks and correction in Brent crude by $10 dollars in two days. In the opening bell, the BSE Sensex rallied over 1,200 points to reclaim 78,000 mark, while the NSE Nifty added nearly 400 points amid broad-based buying across indices.

The Sensex rose 1,240 points, or 1.6%, to 78,086, after opening higher at 77,981.10 and touching an early high of 78,270.42, compared with the previous close of 76,847.57. Similarly, the Nifty 50 climbed 385 points, around 1.6%, to trade near 24,280 levels, compared to its previous close of 23,842.65.

Broader markets outperformed the benchmarks, with the Nifty Midcap 100 and the Nifty Smallcap 100 advancing up to 1.9%. The sharp upmove comes on the back of positive global cues, particularly easing oil prices and optimism around U.S.-Iran talks, which boosted investor sentiment and triggered broad-based buying across sectors.

Meanwhile, volatility cooled off sharply, with the India VIX declining over 8% to around 18.78, signalling easing market anxiety and improved investor confidence.

"Hopes of resumption of U.S.-Iran talks, Israel-Lebanon talks and crash in Brent crude by $10 dollars in two days augur well for the market in the near-term. The resilience of markets worldwide, despite the IMF’s warning about a global recession if the conflict prolongs, is an indication that the market is discounting an end to the conflict soon,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

All 30 Sensex stocks in green

All 30 Sensex stocks were flashing in green, with InterGlobe Aviation emerging as top gainer, which surged nearly 5%. IT stocks saw strong buying interest, with Infosys , Tata Consultancy Services , HCL Technologies  and Tech Mahindra  gaining between 2% and 3%, amid renewed optimism in the sector after recent underperformance.

Among industrial and infrastructure plays, Larsen & Toubro rose over 2.4%, while UltraTech Cement advanced more than 2.2%. Port major Adani Ports and Special Economic Zone also gained over 2.3%, supported by improving global trade sentiment.

In the financial space, Bajaj Finance and Bajaj Finserv gained around 2-2.5%, while banking majors such as HDFC Bank, State Bank of India and Kotak Mahindra Bank rose up to 1.7%, lending strong support to the index.

Metal and consumption names also traded higher, with Tata Steel up around 1.7% and Asian Paints gaining over 1.6%. Auto major Maruti Suzuki added over 1%, while FMCG heavyweight Hindustan Unilever rose about 1%.

Heavyweights such as Reliance Industries  and ICICI Bank  also traded in positive territory, though with relatively modest gains, helping sustain the upward momentum.

Sectorally, the rally was led by IT and metals. The Nifty IT jumped over 2.6%, emerging as the top-performing sector, followed by the Nifty Metal, which gained more than 2%. PSU banks also saw strong traction, with the Nifty PSU Bank rising around 2%, indicating buying in rate-sensitive and cyclical segments.

Other sectors also traded in positive territory. The Nifty Realty gained around 1.7%, while the Nifty Consumer Durables and Nifty Oil & Gas advanced about 1.5% each. Defensive sectors such as FMCG and pharma saw relatively modest gains, with the Nifty FMCG up about 1% and the Nifty Pharma rising less than 1%.

Technical Outlook

Devarsh Vakil, Head of Prime Research at HDFC Securities, said the short-term trend of the Nifty remains strong, with the swing low at 23,555 expected to act as a key support going forward. However, the 24,300–24,500 zone is likely to pose near-term resistance. He added that as the earnings season gathers pace, stock-specific movements will be driven by performance relative to expectations.

Meanwhile, Shrikant Chouhan, Head of Equity Research at Kotak Securities, believes 24,100 (Nifty) / 78,100 (Sensex) will act as a crucial resistance zone for traders. As long as the market trades below this level, weak sentiment may persist.

On the downside, the nifty and Sensex could retest 23,600–23,500 and 76,600–76,300 levels, respectively. On the upside, a breakout above 24,100 and 78,100 could shift sentiment, with potential to move towards 24,300 and 78,700. A sustained close above these levels may trigger further upside momentum, pushing the indices towards 24,500 and 79,300.

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