BSE Sensex surged as much as 833 points or 1.08% to hit an intraday high of 77,746.79 in early trade on Monday, 4 May, while the Nifty50 climbed 250 points or 1.03% to touch 24,245.85. The rally was fuelled by softer crude oil prices following signs of easing tensions in West Asia, alongside early trends from Assembly election results in four states and one Union Territory.

Sectoral Gainers and Laggards

Broad-based buying drove gains across multiple sectors, with Nifty Auto, Nifty Realty, Nifty Metal, Nifty FMCG, and Nifty Oil & Gas indices each rising up to nearly 2%. However, select heavyweights bucked the trend — Kotak Mahindra Bank, Dr Reddy's Laboratories, TCS, Eternal, ITC, and Bharti Airtel featured among the top losers from the 50-scrip basket.

West Asia Developments Weigh on Crude

US President Donald Trump announced that the United States would initiate efforts to assist vessels stranded in the Strait of Hormuz, describing the move as a 'humanitarian gesture' aimed at helping neutral countries not involved in the ongoing US-Israeli conflict with Iran. The remarks immediately weighed on oil prices. Brent crude fell 66 cents or 0.61% to $107.51 per barrel, while US West Texas Intermediate (WTI) declined $2.83 or 2.77% to $99.11 a barrel.

Meanwhile, Tehran confirmed that Washington had responded to its 14-point peace proposal conveyed via Pakistan, and that the reply is currently under review. Trump, however, signalled the response may not be acceptable, leaving diplomatic uncertainty intact.

Assembly Election Trends Add Sentiment Boost

Back home, results of Assembly elections in four states — including Tamil Nadu and West Bengal — and one Union Territory are being declared during the trading session. According to market experts, the outcome could lend a near-term sentiment-driven bias to markets, particularly as West Bengal trends are closely tracked. This is not the first time election result days have triggered intraday volatility; past state election sessions have seen both sharp rallies and reversals depending on the political outcome.

Global Cues Supportive

Asian markets also traded higher, providing additional tailwind. Japan's Nikkei, Hong Kong's Hang Seng, and South Korea's KOSPI each rose up to 4%, reflecting a broader risk-on sentiment tied to the West Asia de-escalation narrative. According to market experts, the underlying market direction will continue to hinge on crude oil prices, which remain highly sensitive to developments in the region.

With crude softening, election results trickling in, and global risk appetite recovering, markets will closely watch whether the momentum sustains through the session or fades as clarity emerges on both the geopolitical and domestic political fronts.