Domestic equity indices rose over 2 percent during early trade on Wednesday after positive signals from other Asian markets as hopes of de-escalation on the war front rise. On the other hand, precious metals like gold and silver showed strong gains for the second day. However, the rupee opened a tad lower to hover around its all-time low

Sensex, Nifty Surge 2% For Second Day On Hopes Of Truce; Gold, Silver Gain On Weak Dollar

Domestic equity indices rose over 2 percent during early trade on Wednesday after positive signals from other Asian markets as hopes of de-escalation on the war front rise.

United States President Donald Trump has again indicated a winding down of the war with a 15-point peace plan.

On the other hand, precious metals like gold and silver showed strong gains for the second day. However, the rupee opened a tad lower to hover around its all-time low.

While the Sensex was trading over 1,500 points higher with a gain of around 2 percent, the Nifty was closing in on the 23,500 mark at 10:50 AM on Wednesday.

With hopes of a truce between the warring sides strengthening, both indices opened higher for the second consecutive session after posting a loss of around 2.5 percent on Monday.

On Wednesday, the Sensex opened at 74,652 points, which is just 0.7 percent higher than its previous close of 74,068 points. The Nifty also opened with a marginal gain of 0.6 percent at 23,064 points compared to its previous close of 22,912 points.

Both indices surged after the market opening as Trump announced his 15-point peace deal and Iran agreed to allow passage to shipments through the Strait of Hormuz.

Broader indices were trading in the green by 2–3 percent. Nifty Midcap 100 and Nifty Smallcap 100 were around 2.4 percent and 2.9 percent higher, respectively.

Among the sectoral indices, the biggest gains were seen in Nifty Consumer Durables, which was up by 3.8 percent, and Nifty Realty, which was up by 3.4 percent. Indices like Nifty Metal, Nifty Auto, and Nifty Financial Services also gained.

On the other hand, the bullion market also reversed its losses on Wednesday, with spot gold prices rising by Rs 4,463, or 3.29 percent, to Rs 1,40,309 per 10 grams of 24-carat purity. Spot silver also jumped by 7 percent to Rs 2,24,457 per kg.

According to experts, gains in the rupee and eased concerns about inflation supported the rise in precious metals.