On Wednesday, the BSE Sensex and NSE Nifty indices in Mumbai experienced a significant rally, closing nearly 4% higher, driven by a ceasefire announcement between the US and Iran and a sharp decline in crude oil prices. The Sensex surged by 2,946.32 points (3.95%) to settle at 77,562.90, while the Nifty climbed 873.70 points (3.78%) to end at 23,997.35. The announcement of a two-week ceasefire alleviated fears in the market, contributing to a drop in India’s volatility index by over 20%. Brent crude oil prices fell by 13.89% to $94.09 per barrel, reflecting a positive sentiment in energy markets. The Reserve Bank of India opted to keep its key policy rate unchanged at 5.25%, signaling a cautious approach amid ongoing geopolitical tensions. Analysts predict that the ceasefire may lead to broader regional stability and positively impact India's economy by lowering energy costs and supporting financial markets.