Signs of peace in West Asia strengthened further, lifting global investor sentiment. Crude oil prices declined sharply, the dollar index weakened and gold prices jumped. US equities rallied strongly overnight, while Asian markets advanced this morning. US futures were also trading higher.
In derivatives trading at GIFT City, Gift Nifty closed at 24,550.50 on Wednesday night. It later slipped to 24,426 in early trade before recovering, indicating that the Nifty could open higher today.
Reports suggest that diplomatic talks between the US and Iran have made crucial progress. A draft understanding aimed at ending the conflict and continuing negotiations on the nuclear issue has reportedly been prepared. If Iran accepts the proposal, tensions in West Asia could ease significantly.
Crude oil prices fell for a third consecutive session. Brent crude plunged nearly 8 percent to close at $101.27 a barrel and slipped below $100 in early Asian trade today. However, optimism over peace prospects pushed gold sharply higher, with prices nearing $4,700 an ounce.
Market direction now hinges on Iran’s response expected later today. US President Donald Trump is reportedly keen to resolve the Iran issue before beginning his China visit next Thursday.
Fresh developments in West Asia pushed US equities to record highs again on Wednesday. The S&P 500 and Nasdaq closed at all-time highs, aided by strong corporate earnings.
The Dow Jones Industrial Average rose 612.34 points, or 1.24 percent, to close at 49,910.59. The S&P 500 gained 105.90 points, or 1.46 percent, to end at 7,365.12, while the Nasdaq Composite surged 512.82 points, or 2.03 percent, to finish at 25,838.94.
US futures traded mixed this morning. Dow futures were up 60 points, or 0.12 percent, while S&P 500 futures gained 5 points, or 0.07 percent. Nasdaq futures, however, slipped 22 points, or 0.07 percent.
In New York trading on Wednesday, HDFC Bank ADR jumped 3.22 percent and rose another 0.66 percent in after-hours trade to $25.80. ICICI Bank ADR climbed 2.81 percent before ending unchanged in extended trade at $26.75.
Infosys ADR gained 1.44 percent during regular trade but fell 1.50 percent in after-hours trade to close at $12.45. Wipro rose 0.50 percent and later remained unchanged at $2.00.
European markets rallied as much as 3 percent on hopes of peace in West Asia.
Shares of Novo Nordisk gained 2 percent after sales of its obesity drug Wegovy beat expectations despite rising competition.
Asian markets also traded higher today. Japan’s market surged after reopening from holidays, with the Nikkei 225 jumping 5.40 percent to cross 62,000 for the first time. Shares of SoftBank Group soared 12 percent.
South Korea’s KOSPI, which has gained 70 percent so far this year, slipped 1.1 percent today. Samsung shares had surged 14 percent yesterday, pushing the company’s market capitalisation above $1 trillion.
Australia’s benchmark index gained 1 percent, while Hong Kong’s market rose 1.5 percent and Shanghai advanced 0.3 percent.
Peace hopes and falling crude oil prices drove Indian equities sharply higher on Wednesday. However, profit-booking trimmed gains from intraday highs. The Sensex crossed 78,000 briefly but failed to hold above that level.
Banking, financials, realty, auto, pharma and tourism stocks led the rally.
Despite the market surge, foreign institutional investors remained heavy sellers. FIIs sold equities worth ₹5,834.90 crore in the cash market, while domestic institutions bought shares worth ₹6,836.87 crore.
The BSE Sensex climbed 940.73 points, or 1.22 percent, to close at 77,858.52. The Nifty 50 gained 298.15 points, or 1.24 percent, to settle at 24,330.95.
Bank Nifty surged 1,434 points, or 2.63 percent, to 55,981.05. The Nifty Midcap 100 index rose 1.76 percent to 61,326.70, while the Smallcap 100 index advanced 1.93 percent to 18,534.10.
Market breadth remained positive. On the BSE, 2,813 stocks advanced while 1,427 declined. On the NSE, 2,449 stocks rose against 833 losers.
Godrej Consumer Products reported an 8.4 percent rise in fourth-quarter revenue and a 9.7 percent increase in net profit. CEO Sudhir Sitapati received a five-year extension.
Bajaj Auto posted a 32 percent rise in revenue and a 34 percent increase in net profit for the fourth quarter, beating market expectations. The company also announced a buyback worth ₹5,633 crore at ₹12,000 per share, a 16 percent premium to Wednesday’s closing price of ₹10,314.60.
Paytm parent One 97 Communications swung to a net profit of ₹184 crore in the fourth quarter from a loss of ₹540 crore a year earlier. For FY26, the company reported a net profit of ₹552 crore against a loss of ₹663 crore in the previous year — its first annual profit since listing.
PB Fintech reported a 37 percent increase in fourth-quarter revenue and a 54 percent rise in net profit.
Liquor maker Radico Khaitan doubled its quarterly net profit to ₹179.5 crore.
Birlasoft reported 44.1 percent growth in fourth-quarter net profit.
Rising hopes of a peace agreement in West Asia pushed gold prices sharply higher. Gold climbed 3 percent on Wednesday to close at $4,692 an ounce and rose further to $4,716 this morning. Leading investment banks now expect gold to move towards $6,000 an ounce.
In Kerala, 22-carat gold prices jumped ₹2,160 on Wednesday to ₹1,11,560 per sovereign.
Silver closed at $77.48 an ounce on Wednesday and rose to $78.24 this morning.
Platinum traded at $2,073, palladium at $1,532 and rhodium at $9,500.
Industrial metals traded mostly higher, except aluminium.
Copper surged 2.94 percent to $13,351.40 a tonne and has gained nearly 9 percent over the past month. Analysts expect it to soon surpass its 52-week high of $13,843.40.
Aluminium fell 1.22 percent to $3,527.85 a tonne. Lead, nickel and zinc gained, while tin jumped 5.32 percent to $52,449 a tonne.
In Bangkok, RSS-3 rubber rose to $293.40 per quintal. Synthetic rubber gained 0.66 percent to 16,458 yuan per tonne.
Coffee prices fell 2.09 percent to 283.70 cents a pound, while palm oil declined 3.89 percent to 4,527 Malaysian ringgit a tonne.
International cocoa prices surged 4.96 percent to $4,276 a tonne, the highest level since February. Prices have jumped 41.22 percent over the past month, though they remain below half of last year’s peak.
Concerns persist that drought during the harvest season in Ivory Coast and Ghana could reduce both supply and quality. Rising fertiliser costs and fears linked to the El Niño weather pattern are also expected to affect production in the coming months. Agencies have started revising surplus stock estimates for the 2025-26 and 2026-27 seasons.
Cocoa had hit a record high of $12,906 a tonne in December 2024.
The US dollar index fell to 98.02 on Wednesday and slipped further to 97.91 this morning as geopolitical tensions eased.
The euro rose to $1.1761 and the pound strengthened to $1.3605. The Japanese yen appreciated to 156.10 against the dollar, with speculation that the Bank of Japan may intervene to curb further gains.
The Chinese yuan strengthened to 6.81 per dollar.
The yield on US 10-year Treasury bonds rose sharply to 4.344 percent.
Lower crude oil prices and a weaker dollar index boosted the rupee on Wednesday. The dollar fell by 67 paise to close at ₹94.61. The rupee may strengthen further today.
In the non-deliverable forward market, the dollar slipped to ₹94.52 this morning. The Chinese yuan eased to ₹13.89, while the euro weakened to ₹111.28.
Crude oil prices plunged nearly 8 percent on Wednesday following reports of a possible US-Iran agreement. Brent crude settled at $101.27 a barrel, while WTI crude fell to $95.08.
Prices recovered slightly this morning after the US launched an investigation into crude exports by American companies following a surge in gasoline prices above $4.50 a gallon. Any reduction in US exports could worsen the global crude supply shortage.
Brent crude rose 1.08 percent to $102.35 before easing to $101.67, while WTI climbed to $96.31 before slipping to $95.49. UAE’s Murban crude traded at $98.29.
India’s crude basket price had risen to $112.47 on Tuesday.
Cryptocurrencies continued to trade at elevated levels, though profit-booking led to some correction.
Bitcoin slipped below $81,150 this morning, while Ether traded below $2,330 and Solana below $88.5.
(May 6, Wednesday)
Sensex: 77,858.52 (+1.22%)
Nifty 50: 24,330.95 (+1.24%)
Bank Nifty: 55,981.05 (+2.63%)
Midcap 100: 61,326.70 (+1.76%)
Smallcap 100: 18,534.10 (+1.93%)
Dow Jones: 49,910.59 (+1.24%)
S&P 500: 7,365.12 (+1.46%)
Nasdaq: 25,838.94 (+2.03%)
Dollar: ₹94.61 (-₹0.67)
Gold (ounce): $4,692 (+$133.70)
Gold (sovereign): ₹1,11,560 (+₹2,160)
Brent crude: $101.67 (-$8.60)