Mumbai: Indian equity benchmarks witnessed an explosive rally on Friday as the BSE Sensex skyrocketed by nearly 1,700 points and the NSE Nifty vaulted past the 23,600 mark. Driven by positive global cues and a dramatic easing of geopolitical tensions, this massive market surge boosted investor wealth by a staggering Rs 10.23 lakh crore in a single trading session.
At the closing bell, the 30 share BSE Sensex stood at 75,527.95, marking a stellar gain of 1,695 points. Similarly, the broader NSE Nifty 50 index surged 461 points to settle at 23,622.90. The extraordinary buying pressure across sectors effectively cooled market volatility, with the India VIX dropping over five percent to signal its calmest close in more than a week.
The primary catalyst behind this sudden optimism on Dalal Street was a major geopolitical breakthrough in the Middle East. Investor sentiment across the globe improved significantly after US President Donald Trump indicated that Washington had reached a key peace settlement with Iran. This development triggered widespread hopes for the reopening of the crucial Strait of Hormuz, which handles more than 20 percent of the daily global oil shipments.
As a result of these peace talks, international crude oil prices tumbled below 90 dollars per barrel. Brent crude futures dropped over four percent, bringing immense macroeconomic relief to an import dependent country like India. Mirroring this positive shift, the Indian rupee also strengthened considerably, gaining 72 paise to settle at 95.13 against the US dollar.
Buying interest was visible across almost all major domestic sectors, with banking, financial services, and realty indices leading the charge. Among the prominent corporate gainers, Bajaj Finance, Titan Company, Tata Steel, and Larsen and Toubro recorded substantial gains. On the flip side, IT and power sector stocks including Tech Mahindra, Power Grid Corporation, and HCL Technologies faced mild selling pressure to close in the red.
This single day rally has taken the total market capitalisation of all BSE listed companies closer to the 462 lakh crore rupee mark. While retail investors celebrate this massive wealth creation, financial analysts suggest maintaining a balanced approach. Experts believe that the formal execution of the geopolitical truce and subsequent fluctuations in crude oil prices will remain the key drivers for Indian markets in the upcoming week.