Benchmark stock market indices soared by almost 4%, closing significantly higher as Dalal Street surged following a ceasefire agreement in the West Asia conflict. Investor wealth increased by approximately Rs 17.1 lakh crore during the session, propelling the total BSE market capitalization to Rs 445.8 lakh crore.
The S&P BSE Sensex surged by 2,946.32 points, finishing at 77,562.90, while the NSE Nifty50 jumped by 873.35 points to conclude at 23,997.35.
Vinod Nair, the Head of Research at Geojit Investments Limited, highlighted that the temporary ceasefire is viewed as a positive move towards enhancing regional stability. He mentioned that India is set to benefit from the reopening of the Hormuz Strait, leading to a drop in oil prices below $100, thereby reducing risks to FY27 EPS growth. The improved sentiment resulted in a significant decrease in the 10-year bond yield, strengthening the rupee. Additionally, the RBI’s decision to maintain its current stance further bolstered financial markets.
After the market closed, InterGlobe Aviation Ltd emerged as the top gainer on the Sensex, climbing by 8.22%. Following closely was Larsen and Toubro Ltd, which saw a 7.64% increase. Bajaj Finance Ltd rose by 7.03%, Mahindra and Mahindra Ltd added 6.60%, and Axis Bank Ltd ended higher with a 6.56% gain.
On the other hand, Tech Mahindra Ltd experienced the most significant decline, dropping by 1.53%. Sun Pharmaceutical Industries Ltd fell by 0.37%, and Power Grid Corporation of India Ltd slipped by 0.20% at the close.
Nair mentioned that despite a subdued Q4 results outlook, investors are focusing on reasonable valuations and a stable medium-term earnings trajectory, suggesting that the current market rally still has potential to continue in the short run.