The Indian benchmark indices opened over 400 points up on Wednesday amid positive global cues, as buying was seen in the IT, auto and pharma sectors in the early trade.

At around 9.25 am, Sensex was trading 445.6 points or 0.54 per cent up at 82,500.73 while the Nifty added 130.15 point or 0.52 per cent at 25,174.50

According to analysts, a significant feature of the recent market trend has been its resilience despite major challenges like the West Asian crisis.

"Even during the short India-Pakistan conflict, the market has been resilient. A significant contributor to this resilience has been FII buying during the crisis," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

The Indian stock markets ended Tuesday on a positive note, even though benchmark indices gave up most of their early gains due to fresh geopolitical concerns.

After rising over 1 per cent in early trade, both the Sensex and Nifty settled with modest gains as news emerged of a possible breach in the newly announced ceasefire between Iran and Israel.

The Sensex had touched an intra-day high of 83,018.16 but later pared its gains and closed at 82,055.11. It still ended the day with a gain of 158.32 points, or 0.19 per cent.

The Nifty, too, saw volatility through the day. It moved between 25,317.70 and 24,999.70 before settling at 25,044.35, up by 72.45 points or 0.29 per cent.

Oil prices fell by over 5 per cent to a two-week low in the international market on Tuesday after Israel announced that it has agreed to US President Donald Trump’s proposal for a ceasefire with Iran.

Price of the benchmark Brent crude declined by nearly $4 to $67.7 a barrel while U.S. West Texas Intermediate crude turned cheaper by $3.75 at $64.76 per barrel as concerns abated over disruption in oil supplies due to the tensions in the Middle East.

Israel has agreed to President Trump's proposal for a ceasefire with Iran after it achieved its goal of “eliminating” Tehran's nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu said in a statement on Tuesday.

The Indian stock market witnessed a sharp surge on Tuesday, with the Sensex soaring more than 1,000 points in early trade, while the Nifty reclaimed the 25,250 mark.

A sudden easing of geopolitical tensions in the Middle East and a steep drop in crude oil prices sparked a wave of buying across sectors, lifting overall market sentiment.

The Sensex opened at 82,534.61, higher than its previous close of 81,896.79, and rallied over 1 per cent to hit an intra-day high of 82,937.

The Nifty, too, opened strong at 25,179.90, up from 24,971.90, and touched a high of 25,287.65.

Broader markets joined the rally, with the BSE Midcap and Smallcap indices climbing over 1 per cent.

In a significant move to strengthen the Indian Army’s operational readiness in counter-terrorism operations, the Ministry of Defence has concluded 13 contracts worth Rs 1,981.9 crore under the Emergency Procurement mechanism, according to an official statement issued on Tuesday.

The key equipment being procured includes Integrated Drone Detection and Interdiction Systems, Low Level Lightweight Radars, Very Short Range Air Defence Systems and Remotely Piloted Aerial Vehicles.

Loitering Munitions, including Vertical Take-Off and Landing systems, various categories of drones, Quick Reaction Fighting Vehicles, Night Sights for Rifles, Bullet Proof Jackets and Ballistic Helmets also form part of the list.

India is likely to see a GDP growth of 6.5 per cent in current fiscal (FY26) due to robust domestic demand, a normal monsoon and monetary easing, a report by S&P Global Ratings said on Tuesday.

Domestic demand resilience is particularly relevant in limiting the economic slowdown in economies less exposed to goods exports such as India.

“We see India's GDP growth holding up at 6.5 per cent in fiscal 2026 (year ending March 31, 2026). That forecast assumes a normal monsoon, lower crude oil prices, income-tax concessions and monetary easing,” said the report covering Asia-Pacific economies.

In India, falling food inflation also helps contain headline inflation.

The country’s annual rate of inflation based on the Wholesale Price Index (WPI) eased further to a 14-month low of 0.39 per cent in May from 0.85 per cent in April and 2.05 per cent in March.

The Indian benchmark indices opened in green on Tuesday amid positive global cues, as geopolitical tensions eased after Iran–Israel ceasefire announced by US President Donald Trump.

Buying was seen in the auto, IT, PSU bank and financial service sectors in the early trade.

At around 9.31 am, Sensex was trading 756.5 points or 0.92 per cent up at 82,653.33 while the Nifty added 229 point or 0.92 per cent at 25,200.90

According to analysts, the dramatic developments in West Asia culminating in President Trump’s announcement of ceasefire indicate that the worst of the conflict is over.

"The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

The Indian stock markets started the week on a weak note as tensions escalated in the Middle East, after the United States bombed three nuclear facilities in Iran, showing clear support for Israel in the ongoing conflict.

The development made investors cautious, leading to a fall in benchmark indices on Monday. The Sensex dropped 511.38 points, or 0.62 per cent, to close at 81,896.79. During the intra-day, it moved between a high of 82,169.67 and a low of 81,476.76.

Similarly, the Nifty also ended in the red. It fell 140.50 points, or 0.56 per cent, to settle at 24,971.90. The index had touched an intra-high of 25,057 and a low of 24,824.85 during the session.

Interestingly, broader markets performed better than the frontline indices. The Nifty Midcap100 closed with a gain of 0.36 per cent, while the Smallcap100 rose 0.70 per cent.

While geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, pose certain challenges to global trade dynamics, India’s export sector remains resilient and adaptive, the Federation of Indian Export Organisations (FIEO) said on Monday.

The country’s trade with both Iran and Israel, while important, constitutes a small share of the overall export-import basket.

"The government and industry are jointly monitoring developments to ensure minimal disruption," FIEO President S.C. Ralhan said.

"We do anticipate some short-term impact on demand and logistics, particularly in the Gulf region, which serves as a crucial hub for Indian exports. Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors," he said in a statement.

Global capital can no longer overlook India's structural economic advantages, as the nation is poised to significantly outpace G7 economies in growth, according to a report released on Monday by wealth management firm Equirus.

The report identifies strong macro fundamentals, policy-led capital expenditure, a resurgence in rural consumption, and structural manufacturing shifts as key long-term drivers of India's growth in an uncertain global environment.

“India is no longer the world’s fastest-growing economy just on paper -- it is structurally better positioned than most G7 nations. That’s a seismic shift,” said Mitesh Shah, CEO, Equirus Credence Family Office.

"The global macro regime is shifting. US growth has been revised down sharply, and while India is projected to contribute over 15 per cent to global GDP growth (2025-2030), traditional 60/40 portfolios are breaking down. In this new regime, strategic asset allocation across geographies and growth cycles isn’t optional -- it’s the alpha generator," he added.