The Sensex closed at 77,958.52, up 941 points or 1.22 percent, while the Nifty 50 settled at 24,330.95, rising 298 points or 1.24 percent. Investors added about ₹6 lakh-crore in a single session.
Indian equity benchmarks rallied more than 1 percent on Wednesday, May 6, tracking improving global sentiment after reports suggested the US and Iran were nearing a deal to end their conflict.
The Sensex touched an intraday high of 78,022.78, gaining over 1,000 points, while the Nifty 50 hit 24,356.50 during the session before paring some gains.
Broad-based buying lifted the broader market as well. The BSE Midcap index rose 1.67 percent and the Smallcap index gained 1.77 percent.
Among Nifty 50 stocks, InterGlobe Aviation (IndiGo), Tata Motors and Shriram Finance were top gainers, with 35 constituents ending higher. ONGC, Reliance Industries and Power Grid Corporation were among the laggards.
Market capitalisation of BSE-listed firms jumped to ₹473 lakh-crore from below ₹467 lakh-crore in the previous session. Investors added about ₹6 lakh-crore in a single session.
Reports indicated that the US and Iran are close to an agreement to end hostilities, easing concerns over global growth and inflation.
Axios reported that the US believes it is “getting close to an agreement” with Iran to set a framework for further negotiations.
“Domestic markets rallied on a risk-on sentiment, driven by easing US–Iran tensions and China’s diplomatic engagement, which helped contain crude prices, though the trend remains headline-sensitive,” said Vinod Nair of Geojit Investments.
Brent crude prices dropped about 6 percent to near $103 per barrel amid expectations of easing tensions and possible reopening of the Strait of Hormuz, a key global energy route.
The rally was supported by strong short covering across sectors, especially after crude prices declined and geopolitical risks eased.
Banking, auto, financial services, pharma and realty indices rose over 2 percent each, while metal, IT and consumer durables gained up to 1 percent.
“Gains across financials, pharma, auto and realty were partly led by short covering and tactical moves. With input cost pressures and forex risks still present, a selective investment approach is advisable,” Nair added.
The rupee appreciated about 0.7 percent to a one-week high of 94.59 against the dollar in intraday trade, supported by falling crude prices and improved risk sentiment.
Analysts see key resistance for the Nifty 50 in the 24,450–24,500 range. A sustained move above this zone could push the index towards 24,650 and 24,800 in the near term. On the downside, immediate support is seen at 24,220–24,200.
The index has also formed a strong base around 24,000, aligned with key moving averages. A breakout from a symmetrical triangle pattern suggests potential upside towards 24,500, while easing volatility is likely to support the bullish momentum.
