Domestic equity benchmarks ended sharply higher on Monday, supported by value buying in select large-cap stocks as investors assessed the potential fallout of the ongoing U.S.-Iran conflict. Sentiment improved after media reports indicated that Donald Trump is likely to announce in the coming days the formation of an international coalition to escort commercial shipping vessels through the Strait of Hormuz, as the conflict with Iran enters its third week. U.S. officials reportedly said the White House could unveil the initiative as early as this week. However, overall sentiment remained cautious amid persistent FII outflows and elevated crude oil prices due to ongoing tensions involving Iran, Israel and the United States. The Nifty closed above the 23,400 mark, led by gains in auto, financial services and private banking stocks.

The S&P BSE Sensex jumped 938.93 points or 1.26% to 75,502.85. The Nifty 50 index rose 257.70 points or 1.11% to 23,408.80. In the past three sessions, the Sensex dropped 4.65% while the Nifty fell 4.57%.

HDFC Bank (up 2.88%), ICICI Bank (up 1.49%) and Reliance Industries (up 1.05%) boosted the indices higher today.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.42% and the BSE 250 SmallCap Index shed 0.47%.

The market breadth was weak. On the BSE, 1,470 shares rose and 2,910 shares fell. A total of 169 shares were unchanged.

The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, dropped 4.60% to 21.60.

Economy:

India’s merchandise trade deficit narrowed to $27.1 billion in February from $34.68 billion in January. Goods exports edged up to $36.61 billion in February from $36.56 billion in January, while imports declined to $63.71 billion from $71.24 billion during the same period. However, on a year-on-year basis, the merchandise trade deficit widened sharply from $14.42 billion in February last year.

Meanwhile, Indias wholesale price index (WPI) inflation accelerated to 2.13% in February 2026 compared with 1.81% in January 2026, marking an 11-month high. Food inflation edged higher to 1.85% during the month from 1.41% in January. Inflation in the fuel and power segment turned positive at 1.17% in February against a contraction of 1.62% in the previous month.

Numbers to Track:

The yield on India’s 10-year benchmark federal paper rose 0.34% to 6.702 compared with the previous session close of 6.679.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 92.3750 compared with its close of 92.3000 during the previous trading session.

MCX Gold futures for the 2 April 2026 settlement fell 1.93% to Rs 155,400.

The US Dollar Index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.28% to 99.82.

The United States 10-year bond yield declined 0.68% to 4.256.

In the commodities market, Brent crude for May 2026 settlement rose 73 cents or 0.71% to $103.87 a barrel.

Crude prices climbed as the Trump administration weighed military strikes on Tehran’s Kharg Island, a strategically vital hub often referred to as Irans oil lifeline.”

President Donald Trump on Friday reportedly ordered strikes against Iranian military assets on Kharg Island and warned of further attacks on crude facilities located there. Mike Waltz, the U.S. ambassador to the United Nations, repeated the warning Sunday, as per media reports.

Global Markets:

Dow Jones futures are up by 219 points, signaling a positive start for US stocks today.

Most European shares advanced on Monday as investors tracked the ongoing unrest in the Middle East and a surge in global oil prices.

Asian indices ended mixed as investors assessed elevated crude prices and fresh developments in the escalating US-Iran conflict.

On the data front, Chinas retail sales for the first two months of the year rose 2.8% YoY, beating expectations for a 2.5% increase but marking a slowdown from the 4% growth recorded in the January-February period of 2025.

Industrial output increased 6.3%, also surpassing forecasts for a 5% rise. Industrial production has remained a bright spot in the worlds second-largest economy, supported by resilient external demand, particularly from European and Southeast Asian markets.

On Wall Street, US stocks ended lower on Friday despite an initial recovery after the opening bell.

The S&P 500 declined 0.61% to close at 6,632.19, placing the index about 5% below its recent peak. The Nasdaq Composite fell 0.93% to 22,105.36, while the Dow Jones Industrial Average dropped 119.38 points, or 0.26%, to settle at 46,558.47.

Rising oil prices linked to geopolitical tensions weighed on market sentiment and kept investors cautious.

Meanwhile, a federal judge on Friday rejected the Justice Departments attempt to subpoena Federal Reserve Chair Jerome Powell, marking a legal win for the central bank. US District Judge James Boasberg ruled that the subpoenas issued by US Attorney Jeanine Pirro were improper and appeared politically motivated.

Stocks in Spotlight:

Bandhan Bank fell 7.46% after media reports said its promoter, Bandhan Financial Services, is exploring options such as a stake sale or an initial public offering (IPO) to facilitate investor exits. Promoter group entities currently hold a 39.74% stake in Bandhan Bank.

The bank clarified that it is not aware of any such development and has not received any communication in this regard.

IDBI Bank fell 16.49% after media reports suggested that the government may have scrapped plans to sell its stake in the lender, as financial bids from potential buyers reportedly came in below the reserve price set by the inter-ministerial group on disinvestment. The government and Life Insurance Corporation of India (LIC) had planned to jointly sell a 60.72% stake in the bank, including 30.48% from the Centre and 30.24% from LIC. Currently, the Centre holds 45.48% in IDBI Bank, while LIC owns 49.24%.

The bank clarified that it has not received any communication from the government regarding cancellation of the process.

Tejas Networks rose 5.44% after the company announced that it had received a purchase order to supply its 4G radio access network (RAN) solutions for a mobile network expansion project in South Asia. The company said its 4G multiband radio products will be deployed at multiple locations across the operators network as part of the project. The order marks a step toward expanding Tejas Networks international wireless customer base.

Bajel Projects surged 20% after the company said it has secured an order worth over Rs 700 crore from Maharashtra State Electricity Transmission Company (MSETCL) for setting up a 400/220 kV AIS substation at Saswad in Pune district along with associated transmission lines.

Omnitech Engineering shed 0.66%. The company reported a 170.73% surge in consolidated net profit to Rs 22.2 crore in Q3 FY26 compared to Rs 8.2 crore posted in the same quarter last year. Revenue jumped by 81.08% YoY to Rs 134 crore in Q3 FY25.

VA Tech Wabag rose 0.2%. The company announced that its joint venture has secured an Asian Development Bank (ADB)-funded ‘mega’ order from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB). The company classifies a ‘mega’ order as a contract with a value exceeding Rs 1,000 crore.

Adani Power rose 5.04% after the company said that it has received a Letter of Award from Maharashtra State Electricity Distribution Company for the long-term supply of 1,600 MW of thermal power under a power supply agreement (PSA).

SEAMEC rose 3.31% after the company said a consortium comprising SEAMEC and Supreme Hydro Engineering has received a notification of award from Oil and Natural Gas Corporation (ONGC) for operation and maintenance services of the vessel Samudra Sevak.

izmo added 3.71% after izmo Microsystems announced the signing of a memorandum of understanding with CCRAFT SA and Alcyon Photonics SL to jointly design, manufacture and commercialise photonic integrated circuit (PIC) solutions.

Aster DM Healthcare declined 2.64% after certain nursing staff across its hospitals in Kerala joined a statewide strike from 9 March 2026, led by the United Nurses Association, seeking revision in wage structures.

Zydus Lifesciences declined 2.17%. The company said its Desidustat tablets, licensed to a subsidiary of China Medical System Holdings (CMS), have been approved in China for treating renal anaemia by the National Medical Products Administration (NMPA).

Alkem Laboratories fell 0.56%. The company announced that it has received a Certificate of GMP (Good Manufacturing Practice) Compliance of a Manufacturer from the Department of Pharmacy (Human Medicines), Germany for its manufacturing facility located in Baddi, India.

IPO Update:

GSP Crop Science received bids for 42,37,658 shares as against 89,47,367 shares on offer, according to stock exchange data at 16:48 IST on Monday (16 March 2026). The issue was subscribed 0.47 times.

The issue opened for bidding on 16 March 2026 and it will close on 18 March 2026. The price band of the IPO is fixed between Rs 304 and 320 per share.

Innovision received bids for 76,91,382 shares as against 63,99,943 shares on offer, according to stock exchange data at 16:48 IST on Monday (16 March 2026). The issue was subscribed 1.20 times.

The issue opened for bidding on 10 March 2026 and will now close on 17 March 2026. Innovision has extended the IPO closing date to March 17 and revised its price band following a tepid response from investors. The new price band has been fixed at Rs 494 to Rs 519 per share, compared with the earlier range of Rs 521 to Rs 548 per share.

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