I'm LongbridgeAI, I can summarize articles.The Indian stock market experienced a significant rally, with the BSE Sensex rising by 2,618 points (3.5%) to 77,235 and the Nifty up by 776 points (3.3%) to 23,899. This surge was driven by a two-week ceasefire announced by President Trump regarding Iran, allowing safe navigation through the Strait of Hormuz. The market capitalization increased by over ₹12 trillion, reaching ₹441.18 trillion. Sectoral indices, particularly Nifty Realty, saw substantial gains, while the Indian rupee strengthened amid falling oil prices and positive equity recovery.
Stock market rally today: Stock market indices Sensex and Nifty witnessed a gap-up opening on Wednesday as markets reacted to President Donald Trump's two-week suspension of strikes against Iran. According to reports, Iran has also agreed to allow safe navigation through the Strait of Hormuz during the ceasefire, triggering sweeping market moves across oil, equities, and currencies.
The BSE Sensex index gained 2,618 points, or 3.5 per cent, to 77,235. Likewise, the Nifty index was up 776 points, or 3.3 per cent, to trade at 23,899 in early trade.
All the sectoral indices started the session in positive territory, with Nifty Realty leading the gains, up 6 per cent. Broader markets mirrored the positive momentum, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising by 3.5 per cent each.
India VIX slipped 19 per cent to 20 mark, indicating some relief in the near-term volatility.
Today's gains added more than ₹12 trillion to the total market capitalisation of all companies listed on BSE. As per exchange data, the all-India market capitalisation stood at ₹441.18 trillion, up from the previous day's total m-cap of ₹428.77 trillion.
Stock market rally today: Key reasons
West Asia two-week ceasefire: Minutes before his Tuesday deadline for Iran to open the Strait of Hormuz, US President Donald Trump announced a two-week ceasefire. He said that Iran has agreed to allow safe passage through the Strait of Hormuz if attacks on its power infrastructure are ceased. In a post on Truth Social, he shared Iran's official statement in the name of Foreign Minister Abbas Araghchi.
Separately, Israel has also agreed to the ceasefire, The New York Times reported, citing White House officials.
Oil prices fall: Oil prices tumbled sharply following the ceasefire announcement. Oil had surged above $115 earlier in the session after reports of strikes on Iran's Kharg Island, the hub of roughly 90 per cent of Iran's oil exports, before the ceasefire announcement. US crude oil sank 18 per cent to around USD 92.60 while Brent crude oil futures fell about 6 per cent to USD 103.40. Notably, both prices remain well above where they were at the start of the war on February 28.
"The 2-week ceasefire between the US and Iran has dramatically altered the near-term market scenario. The crash in Brent crude following the ceasefire will again turn the market bullish. This ceasefire, particularly the agreed reopening of Hormuz Strait, will embolden the bulls to charge again, aided by the fair market valuations," VK Vijayakumar, chief investment strategist," Geojit Investments, said.
Rupee rebounds: The Indian rupee extended its winning run, gaining nearly 0.5 per cent to 92.58 in early trade, fueled by lower crude prices, domestic equity recovery, and RBI-driven unwinding of bank arbitrage positions. Meanwhile, Dollar Index has cooled off to 98.8, and US 10-year yield has corrected to 4.24 per cent.
Asian stocks rally: Asian markets staged a powerful relief rally after a two-week ceasefire between the United States and Iran. South Korea’s KOSPI surged over 5 per cent. Japan’s Nikkei 225 was up more than 4 per cent, while Australia’s S&P/ASX 200 climbed nearly 3 per cent. The regional MSCI Asia Pacific Index was up around 2.5 per cent.
Overnight, US stocks ended mixed, with Dow Jones closing with a small cut of 85.42 points at 46,584.46. The S&P 500 and ad Nasdaq Composite settled higher by 0.08 per cent and 0.10 per cent, respectively.