New Delhi, April 15 -- The Indian stock market staged a strong recovery on Wednesday, following a rally in global markets, on signs of easing geopolitical tensions in the Middle East and softening crude oil prices amid optimism over the US-Iran peace talks.

The BSE Sensex jumped 1,260.58 points, or 1.64%, to 78,108.15, while the Nifty 50 was up 393.40 points, or 1.65%, at 24,236.05. All the sectoral indices were trading in the green. Broader indices outperformed, as the Nifty Smallcap 100 and the Nifty Midcap 100 indices surged over 2% each.

However, analysts cautioned on the uncertainty around foreign institutional investor (FII) outflows, and potential earnings downgrades, which could limit valuation expansion.

"Markets remain highly...