Indian benchmark indices are likely to open sharply higher on Wednesday, with GIFT Nifty indicating a gap-up start of over 250 points, suggesting Nifty could reclaim levels above the 23,000 mark.
As of early trade, GIFT Nifty was trading at 23,143, up 196.5 points or 0.86%, pointing to strong domestic market cues. Global markets also reflected improved sentiment, with Dow Jones futures rising over 1% and Nikkei 225 gaining nearly 3%.
The positive momentum comes after reports that the United States has sent a 15-point peace proposal to Iran aimed at ending the ongoing conflict in West Asia. The proposal includes key conditions such as dismantling nuclear facilities, halting uranium enrichment, curbing missile programmes, and reopening the Strait of Hormuz, in exchange for sanctions relief and support for Iran’s civilian nuclear programme.
The development has triggered a sharp reaction across global markets. Oil prices, which had surged amid supply disruption fears, fell significantly on easing geopolitical concerns. Brent crude dropped to around $95 per barrel, while US crude also declined sharply as ceasefire hopes improved supply outlook.
Equity markets responded positively to the easing risk sentiment. US stock futures moved higher, with Dow futures gaining over 400 points, while Asian markets traded firmly in the green in early hours.
The cooling in crude prices is seen as a key positive for equity markets, especially for import-heavy economies like India, where elevated oil prices had raised concerns around inflation and current account pressures.
The latest developments mark a potential turning point in global market sentiment, which had remained volatile over the past few weeks due to escalating tensions between the US, Israel, and Iran.