Last Updated on April 1, 2026 11:11 pm by INDIAN AWAAZ
By Our Business Correspondent
Indian equity benchmarks staged a strong rebound on Wednesday, snapping a two-day losing streak, as improving global sentiment and hopes of easing geopolitical tensions boosted investor confidence. Markets rallied after comments by Donald Trump suggesting that US military operations involving Iran could be scaled down within two to three weeks, raising expectations of a possible de-escalation in the Middle East.
The optimism helped calm global risk concerns and weighed on crude oil prices, while softer US bond yields also supported risk appetite in equities. Lower energy prices and easing geopolitical worries lifted sentiment across Asian and European markets, which in turn aided the recovery in domestic equities.
The benchmark BSE Sensex surged 1,186.77 points, or 1.65%, to close at 73,134.32, while the Nifty 50 jumped 348 points, or 1.56%, to settle at 22,679.40. The rebound came after heavy losses in the previous two sessions, during which the Sensex had declined 4.41% and the Nifty had fallen 4.18%.
Market momentum was led by gains in PSU banking and metal stocks, while broader indices outperformed the frontline benchmarks. The BSE MidCap index advanced 2.25% and the BSE SmallCap index climbed 3.44%, reflecting strong participation from the wider market.
Market breadth remained firmly positive. On the BSE, 3,828 shares advanced compared with 508 declines, while 105 stocks remained unchanged. The volatility gauge, India VIX, dropped sharply by 10.31% to 25.01, signalling a cooling of market anxiety following the recent turbulence.
On the macroeconomic front, data released during the day showed that India’s Goods and Services Tax collections crossed the ₹2-lakh-crore milestone in March 2026, reflecting robust economic activity and improved tax compliance at the end of the financial year. Gross GST collections stood at ₹2,00,064 crore, while net collections after refunds were ₹1,77,990 crore. For the full financial year 2025–26, net GST revenues rose 7.1% to ₹19.34 lakh crore, indicating steady economic momentum.
In the currency market, the Indian rupee edged slightly higher against the US dollar. The partially convertible rupee traded at 94.70 compared with its previous close of 94.85. Meanwhile, the US Dollar Index slipped 0.42% to 99.54, while the US 10-year Treasury yield declined to around 4.28%.
Commodity markets remained relatively stable. Gold futures on the Multi Commodity Exchange rose 0.85% to ₹1,52,038 for the June 2026 contract, while Brent crude oil prices eased marginally to about $103.67 per barrel amid hopes that geopolitical tensions may ease.
Global cues also remained supportive. US futures pointed to a higher opening on Wall Street after the Dow Jones Industrial Average surged more than 1,100 points overnight. The rally followed reports suggesting that Iran might be open to ending hostilities and that energy supplies around the strategically vital Strait of Hormuz could stabilise.
In Asia, markets closed broadly higher, buoyed by encouraging economic data from Japan. The Bank of Japan’s Tankan survey showed improving business sentiment among large manufacturers, indicating resilience in the Japanese economy. In China, however, manufacturing activity slowed slightly, though it remained in expansion territory.
Sectoral Performance & Key Drivers
The rally was anchored by a cooling energy market and softening US bond yields. Brent crude eased toward $100 per barrel, providing relief to India’s fiscal outlook.
| Sector/Segment | Impact | Key Highlights |
| Banking & PSU | Leading | PSU Banks led the charge, benefiting from improved liquidity and attractive valuations. |
| Automobiles | Robust | Strong March production and sales data fueled a sector-wide rally. |
| Metals | Strong | Tracked global recovery and expectations of stabilized industrial demand. |
| Mid & Small Caps | Outperforming | BSE SmallCap jumped 3.44%, significantly beating the frontline indices. |
Among individual stocks, automobile manufacturers saw notable gains following the release of March sales data. Mahindra & Mahindra rose 2.53% after reporting a 21% increase in production, while Maruti Suzuki India gained 1.64% on strong sales growth. Tata Motors added 2.24% after reporting higher commercial vehicle sales.
Other gainers included Eicher Motors, which climbed 3.62%, and Atul Auto, which surged over 8% after reporting improved sales figures.
In the aviation sector, InterGlobe Aviation rallied more than 6% after announcing the appointment of William Walsh as chief executive officer, subject to regulatory approval.
Meanwhile, infrastructure and renewable energy stocks also saw buying interest. Indian Renewable Energy Development Agency advanced over 4% after reporting a 22% rise in its outstanding loan book, while Adani Ports & Special Economic Zone gained more than 5% after announcing that it had crossed the milestone of handling 500 million tonnes of cargo.
Overall, analysts said the rebound reflects improving global cues and attractive valuations following the recent market correction, though investors are likely to remain cautious amid ongoing geopolitical developments.