Indian equity markets witnessed a strong rally despite rising crude oil prices and ongoing geopolitical tensions in the Middle East. Benchmark indices surged in early trade, helping investors add nearly ₹3.90 lakh crore to their wealth within a few hours.

The rally was driven by gains in IT stocks, foreign investor buying, a stronger rupee, and optimism ahead of the US Federal Reserve's policy decision.

Sensex and Nifty Post Strong Gains

The market opened on a positive note, with both benchmark indices trading sharply higher.

• The BSE Sensex climbed over 790 points during early trade, touching 77,559.48 before settling slightly lower.

• The Nifty 50 crossed the 24,200 mark, gaining more than 215 points during the session.

The strong opening reflected improved investor sentiment despite global uncertainties.

IT Stocks Lead the Rally

Technology stocks emerged as the biggest gainers, supporting the broader market.

Some of the notable performers included:

• Infosys – up around 3.5%

• Tata Consultancy Services (TCS) – up over 2.5%

• Larsen & Toubro (L&T) – up over 3%

• Hindustan Unilever (HUL) – up over 3%

• HCLTech – up more than 1.5%

• HDFC Bank – up over 1.5%

• Bharti Airtel, ITC, and Eternal also traded with healthy gains.

The Nifty IT index continued its positive momentum after posting strong gains in the previous trading session.

What Drove the Market Higher?

Several factors contributed to the rally:

Reduced Impact of Global AI Sell-Off

While technology-heavy markets in countries such as Japan, South Korea, and Taiwan witnessed sharp declines, Indian IT stocks remained relatively resilient.

Analysts believe India's limited exposure to companies directly tied to AI infrastructure spending helped shield the domestic market from the broader technology sell-off.

Stronger Rupee

The Indian rupee appreciated against the US dollar during early trade, boosting investor confidence.

A stronger domestic currency often supports market sentiment, especially when supported by expectations of stability in foreign exchange markets.

Return of Foreign Investors

Foreign Institutional Investors (FIIs) returned as net buyers after several sessions of selling.

According to preliminary exchange data, FIIs purchased Indian equities worth approximately ₹755 crore, helping improve overall market sentiment.

Focus on US Federal Reserve Policy

Investors are also watching the outcome of the US Federal Reserve's policy meeting. Markets broadly expect the central bank to leave interest rates unchanged, although its commentary on inflation and future rate decisions remains a key focus for global investors.

Investors Add ₹3.90 Lakh Crore in Wealth

The market rally translated into a sharp increase in the total market value of companies listed on the Bombay Stock Exchange.

The BSE's overall market capitalization rose from around ₹479.17 lakh crore at the previous close to approximately ₹483.07 lakh crore during Wednesday's trading session.

This increase of nearly ₹3.90 lakh crore represents the rise in the combined value of listed companies, resulting in substantial gains for investors.

The Bottom Line

Despite concerns over rising crude oil prices and geopolitical uncertainty, Indian markets displayed remarkable resilience. Strong buying in IT stocks, renewed foreign investor interest, a firmer rupee, and optimism surrounding global monetary policy helped push the Sensex and Nifty sharply higher, adding nearly ₹3.90 lakh crore to investor wealth in a single trading session.