Stock Market Opening Bell: Nifty 50 Surges 3.16%, Sensex Climbs 3.58%

Stock Market Opening Bell: After the Iranian side accepted US President Donald Trump's peace overture, Nifty 50 rose 3.16% to 23,855.15 level. and Sensex surged 3.58% to 77,290.63 level. 

Earlier, Gift Nifty had signalled a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 23,840 level, nearly 689 points higher from the Nifty futures’ previous close.

On Tuesday, the Indian stock market extended its rally for the fourth consecutive session and ended higher, with the benchmark Nifty 50 closing over 23,100 level.

Market Expert Ajay Bagga said, "The wave of buying triggered a market stabilisation mechanism, marking the seventh activation of such volatility curbs this year for a market highly sensitive to external shocks."

The positive sentiment witnessed across markets is fuelled by US President Donald Trump's agreement to suspend military actions against Iran for two weeks, citing progress in negotiations and diplomatic interventions by Pakistan.

The Brent oil futures on Intercontinental Exchange (ICE) plummeted 16% in Wednesday's trade to a low of $91.72 a barrel over previous day's close of $109.27 after US-Iran agreed to a two-week temporary ceasefire.

This was further fuelled by Iranian Minister of Foreign Affairs Seyed Abbas Araghchi saying that Iran would allow safe passage through the Strait of Hormuz for two weeks. 

“It is emphasized that this does not signify the termination of the war,” Iran’s Supreme National Security Council statement said, whilst adding “Our hands remain upon the trigger, and should the slightest error be committed by the enemy, it shall be met with full force.”

Ahead of the surge witnessed in both Sensex, and Nifty 50, the US Treasury bonds surged in early Asian trading after Washington and Tehran announced that they had agreed to a two-week ceasefire that would open the Strait of Hormuz.

The yen also strengthened against the US dollar, rising to a level of ¥158.7 on expectations that a calmer situation in the Middle East, Bagga noted.