Indian equities gained alongside global markets, and the benchmark Sensex and Nifty posted their best gains since April 15, 2026, amid hopes that the US and Iran are nearing a peace deal. The benchmark Sensex ended the session on Wednesday at 77,959, a gain of 941 points or 1.2 per cent, while Nifty ended the session at 24,331, a gain of 298 points or 1.2 per cent. The total market capitalisation of BSE-listed firms rose by Rs 6 trillion to Rs 473 trillion. These gains were supported by the fall in crude oil prices, which also drove the rupee higher.
News reports suggested Iran is evaluating a new proposal from the US to end the war. According to news reports, if Iran accepts the United States’s one-page memorandum of understanding, it will lead to the gradual reopening of the Strait of Hormuz and lifting of the American blockade on Iranian ports. Brent crude prices fell on hopes of a peace deal and traded at $102, down 7 per cent. Brent Crude prices have gained 39 per cent since the beginning of the war. Rsisng crude prices are detrimental to India’s economic growth and inflation, as it is a heavy importer of crude oil.
Tuesday’s approval by the Union Cabinet of a new Emergency Credit Line Guarantee Scheme (ECLGS 5.0) worth Rs 18,100 crore to support businesses facing liquidity stress linked to the Middle East crisis, combined with the absence of major disappointments in the March quarter results further boosted sentiment. The new ECLGS is expected to unlock additional credit flow of ₹2.55 trillion to MSMEs, airlines and other sectors.
“Domestic markets rallied on a risk-on sentiment, driven by easing US–Iran tensions and China’s diplomatic engagement, which helped contain crude prices, though the trend remains headline-sensitive. Global cues were further strengthened by strong AI-led tech earnings, while yen-led dollar weakness aided EM flows. Domestically, favourable political cues, improving infra executions, and ECLGS 5.0 approval remain supportive, especially for the MSME sectors,” said Vinod Nair, Head of Research, Geojit Investments.
However, it remains to be seen if the gains are sustainable, said market experts. “Gains across financials, pharma, auto, and realty were partly led by short covering and tactical moves. With input cost pressures and FX risks still present, a selective investment approach is advisable,” added Nair.
“Indian equity markets staged a powerful rebound today, opening with a significant gap-up as global risk sentiment improved following signals of a potential peace deal in the US-Iran conflict. The cooling of WTI crude oil prices below the $100 per barrel mark provided a much-needed relief to the domestic macros, sparking a broad-based rally,” said Vikram Kasat, Head Advisory, PL Capital.
Kasat, however, adds that while the sharp recovery from Tuesday’s lows indicates strong buyer interest at support zones, markets may enter a phase of consolidation near these higher levels. “Investors should remain mindful of the high volatility—evidenced by the India VIX—and persistent FII outflows. Near-term momentum will likely be dictated by the sustainability of the geopolitical de-escalation and upcoming corporate earnings results,” he said.
The broader Nifty Midcap 100 and Nifty Small Cap 100 rose by 1.76 and 1.93 per cent. Market breadth was strong, with 2,813 stocks advancing and 1,427 declining. HDFC Bank, which gained 3.1 per cent, was the biggest contributor to Sensex gains, followed by ICICI Bank, which rose 2.2 per cent.
“Going ahead, the immediate resistance for Nifty is placed in the 24450-24500 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24650, followed by 24800 in the short term. On the downside, the immediate support for Nifty is placed in the 24220-24200 zone,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.
