Last Updated on April 2, 2026 10:59 pm by INDIAN AWAAZ
By Business Correspondent / New Delhi
Indian equity markets witnessed a highly volatile trading session on Thursday, staging a sharp intraday recovery after early losses triggered by geopolitical tensions and surging crude oil prices. Benchmark indices eventually ended marginally higher, masking the intense swings seen during the day.
The BSE Sensex closed at 73,319.55, gaining 185.23 points or 0.25 per cent, while the Nifty 50 settled at 22,713.10, up 33.70 points or 0.15 per cent. During the session, the Nifty had dropped more than two per cent before recovering nearly 500 points from its day’s low.
The sharp fall in early trade followed comments by Donald Trump, who said the United States could take strong action against Iran within the next two to three weeks, dampening hopes of an early ceasefire. The statement rattled global markets as fears of supply disruptions pushed Brent Crude prices up nearly 5.8 per cent to around $107 per barrel, particularly amid concerns over shipping routes through the Strait of Hormuz.
IT Stocks Lead Gains
Among sectoral indices, information technology emerged as the clear outperformer. The IT index rose 2.6 per cent, supported by buying in export-oriented technology companies amid currency volatility.
However, most other sectors ended in the red. Automobile, PSU banking, oil and gas, pharmaceutical and consumer durable stocks each declined by about one per cent, reflecting investor caution amid rising global uncertainties.
The Nifty Bank closed almost flat at 51,548.75, posting a marginal gain of 0.19 per cent.
Broader Markets Mixed
The broader markets underperformed the benchmarks. According to SBI Securities, the BSE Midcap 150 declined 0.6 per cent for the week, while the BSE Smallcap 250 rose 0.8 per cent, outperforming the frontline indices.
For the week, the Sensex and Nifty slipped 0.4 per cent and 0.5 per cent, respectively, indicating continued pressure on large-cap stocks.
Rupee Sees Sharp Rebound
In the currency market, the Indian Rupee recorded its strongest single-session recovery in over 12 years. The rupee rebounded sharply from levels beyond ₹95 per US dollar to trade around ₹93.15.
Market participants attributed the move to regulatory measures by the Reserve Bank of India, including restrictions on banks’ net open rupee positions and limits on non-deliverable forward (NDF) offerings to corporates. These steps triggered large-scale unwinding of dollar positions and short covering in the currency market.
Gold Corrects Sharply
Precious metals witnessed a correction as the stronger rupee weighed on prices. Domestic Gold prices fell sharply by about ₹5,000, slipping to around ₹1,49,000 per 10 grams. International prices also eased, with selling pressure seen on COMEX.
Foreign Investors Continue Selling
Foreign institutional investors maintained heavy selling pressure. Data showed that FIIs offloaded nearly ₹1.22 lakh crore in March 2026, exceeding the previous monthly record of ₹1.14 lakh crore set in October 2024.
Meanwhile, the volatility gauge India VIX rose 2.04 per cent to 25.52, indicating heightened uncertainty and challenging risk-reward dynamics in the derivatives market.
Outlook Remains Uncertain
Market experts said the near-term direction will depend largely on geopolitical developments in West Asia and energy prices. Motilal Oswal Financial Services noted that markets could remain volatile as investors track developments in the US–Iran conflict over the weekend.
Global brokerage Nomura has already downgraded Indian equities to “Neutral” and reduced its year-end Nifty target to 24,500, citing risks from elevated energy prices, global technology cycle shifts and AI-driven capital expenditure trends.
With markets set to reopen after the Good Friday break, analysts say geopolitical developments over the weekend could play a decisive role in determining the direction of equities next week.