Last Updated on April 6, 2026 11:57 pm by INDIAN AWAAZ
Markets Stage Strong Rebound; Financials Lead as Global Tensions Ease, RBI Policy in Focus
BIZ DESK
Domestic equity benchmarks extended their winning streak to a third session on Monday, staging a sharp intraday recovery driven by improving global cues and easing crude oil prices. Early weakness gave way to a decisive afternoon rally as sentiment turned positive on expectations of a potential de-escalation in Iran–US tensions, though investors remained cautious ahead of the Reserve Bank of India’s monetary policy outcome later this week.
The Nifty 50 recovered strongly from its intraday low of 22,542.95 to settle at 22,968.25, marking a gain of 1.12%, while the BSE Sensex climbed 787.30 points, or 1.07%, to close at 74,106.85. Over the past three sessions, both indices have seen a notable rebound, reflecting renewed risk appetite despite lingering macro uncertainties.
The rally was led by banking and financial stocks, with Axis Bank, HDFC Bank and Larsen & Toubro emerging as key contributors to index gains. Strong quarterly business updates and steady credit growth outlook supported buying interest in the sector. However, index heavyweight Reliance Industries capped further upside, declining over 3% and weighing on overall momentum.
Broader markets mirrored the positive trend, with mid- and small-cap indices advancing over 1% each, indicating improved market breadth. Gains outpaced declines significantly on the BSE, highlighting broad-based participation in the rally.
Volatility indicators showed marginal easing, with the India VIX inching lower, suggesting a slight cooling in near-term risk perception. Meanwhile, bond yields softened, and the rupee posted modest gains against the US dollar, reflecting stable domestic macro conditions.
Investor focus is now firmly on the RBI’s Monetary Policy Committee (MPC) meeting, where the central bank is widely expected to maintain status quo on interest rates amid global uncertainties and moderating domestic growth signals. Recent data showed a slight cooling in services activity, adding to expectations of a cautious policy stance.
Globally, markets remain sensitive to geopolitical developments, particularly in the Middle East, and their impact on energy prices. While easing crude prices supported Monday’s rally, any renewed escalation could quickly alter market dynamics.
Overall, the session underscored the market’s resilience and its sensitivity to global triggers, with the near-term outlook hinging on policy clarity and external developments.