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There was a tremendous rise in the Indian stock markets on Wednesday. Both Sensex and Nifty saw a rise of more than 2.5 percent. Investors' enthusiasm increased due to expectations of an early end to the Iran-America-Israel war and many other reasons. At 10:06 am, the Sensex rose by over 2,000 points to hit the day's high of 73,937, while the Nifty50 gained over 550 points and started trading above the 22,900 level. With the return of bull run in the market at the beginning of the new financial year 2027, the total market capitalization of all the companies listed on BSE increased by about Rs 13 lakh crore to more than Rs 425 lakh crore.

All 30 stocks included in Sensex opened in the green. Among these, Trent was at the forefront and showed a growth of more than 7 percent. Bharat Electronics (BEL) gained around 6 per cent, while Bajaj Finance, Adani Ports, Indigo, L&T, M&M, Eternal, Axis Bank, Maruti Suzuki, SBI and HDFC Bank gained around 3-5 per cent.

All sectoral indices on NSE were trading in the green. Among these, Nifty PSU Bank, Nifty Media, Nifty Metal and Nifty Auto saw a growth of more than 3 percent. About 2,671 shares rose in the stock market, while 92 shares declined and there was no change in 49 shares. This happened when India Vix, which measures market volatility, fell by almost 11 per cent to 24.94 in the morning.

Hopes of reducing tension in Iran-America war

Investors are now increasingly hopeful that this terrible war will end soon. US President Donald Trump said the country could end its military attacks on Iran within two to three weeks, and that Tehran does not need to meet the terms of any deal to defuse the conflict. Trump told reporters at the White House on Tuesday that we will leave very soon.

Meanwhile, Iranian President Massoud Pezeshkian said the country has the "necessary will" to end the ongoing war with Israel and the United States, but wants guarantees that the conflict will not reoccur. According to a statement from Pejeshkian's office, he reiterated a key demand of Tehran in his phone call with the European Union president, saying that we have the will to end this conflict, provided that the necessary conditions are met – especially the guarantees that are necessary to prevent the recurrence of this aggression.

U.S. Secretary of State Marco Rubio said Washington is seeing "the endgame" of the Iran war — now in its fifth week — and that the conflict will force the United States to rethink its relationship with NATO. It comes as the war, which is now in its fifth week and has set oil prices on fire, rocked global markets in March.

Global market boom

After expectations of easing of tensions, there was a tremendous rise in the global market. After the report of the Wall Street Journal on Monday, all three major indexes of America rose. It was told in the report that US President Donald Trump has told his advisors that he is ready to end the military campaign against Iran, even if the Strait of Hormuz remains mostly closed.

The S&P 500, Nasdaq and Dow Jones Industrial Average recorded their biggest one-day gains since May 2025. The S&P 500 rose nearly 3 percent on Tuesday, while the tech-heavy Nasdaq gained nearly 4 percent. At the same time, Dow Jones Industrial Average rose by 2.5%.

On Wednesday, tremendous growth was also seen in the Asian market. Japan's Nikkei rose more than 4 percent and South Korea's Kospi rose nearly 7 percent. China's Taiwan Weighted rose more than 4 percent and Shanghai Composite gained more than 1 percent, while Hong Kong's Hang Seng rose more than 2 percent. European markets closed with gains in the previous session. UK's FTSE, France's CAC and Germany's DAX rose up to 0.6 percent.

relief in valuation

Today's huge rally comes after a massive selloff in March, which wiped out huge sums of money from Indian stock markets. Nifty had fallen nearly 11 per cent in March as the Strait of Hormuz remained closed for a long time due to rising tensions in the oil-rich Middle East. This led to a huge surge in oil prices and experts raised questions about its impact on India's macroeconomics.

After the sharp fall, some analysts pointed out that Nifty has fallen below its historical average. This may indicate that valuations are now at a more reasonable level than before. Elara Securities said in a report that historical trends show that there is little scope for further decline in the benchmark index Nifty.

This domestic brokerage firm cited data from seven major geopolitical conflicts in the last 25 years. The firm said that at the time of the beginning of the conflict, Nifty usually sees a decline of only about 10 percent. Therefore, based on historical trends, it can be said that after the huge fall of 11 percent in March, the chances of further fall in the benchmark index are less.

VK Vijayakumar, chief investment strategist at Geojit Investments, said the fall in the market since the beginning of the war has brought Nifty valuations to reasonable levels. He further said that Nifty is now trading at around 19 times, which is lower than the last 10 years average of 22.4 times.

fall in bond yields

US bond yields fell after rising sharply earlier. The benchmark 10-year yield, which falls when Treasury prices rise, slipped to 4.3 percent. This is a decline for the second consecutive session. The US two-year yield, which reflects interest rate expectations, fell 3 bps to 3.77%. This happened when bond yields in March recorded their biggest gain in more than three months.