Sensex soars 1,264 pts, Nifty above 24,200 on oil slide and US-Iran optimism

The headline equity benchmarks surged on Wednesday, tracking firm cues from other Asian markets amid renewed optimism over the resumption of US-Iran peace talks. Sentiment strengthened as crude oil prices slipped decisively below the $100 per barrel mark, while the rupee appreciated against the US dollar, supported by softer crude and a weaker greenback. The Nifty closed firmly above the 24,200 level, led by strong buying in consumer durables and IT stocks.

The S&P BSE Sensex surged 1,263.67 points or 1.64% to 78,111.24. The Nifty 50 index jumped 388.65 points or 1.63% to 24,231.30.

Larsen & Toubro (up 3.08%), Reliance Industries (up 2.26%) and HDFC Bank (up 1.97%) boosted the indices higher today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index soared 2.16% and the BSE 250 SmallCap Index climbed 2.41%.

The market breadth was strong. On the BSE, 3,585 shares rose and 802 shares fell. A total of 137 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 8.93% to 18.67.

Economy:

India's wholesale inflation rose to a 38-month high of 3.88% in March, up from 2.13% in February, driven by higher prices of crude petroleum, fuel, and manufactured goods, according to the Ministry of Commerce and Industry.

The increase was led by a rise in prices of crude petroleum and natural gas, non-food articles, basic metals, manufactured products, and food articles. The index for this major group rose 4.13% in March 2026, compared with 1.17% (provisional) in February 2026. Prices of manufactured goods increased 0.88% in March from 0.75% in February, with 16 of 22 manufacturing groups recording gains while 6 reported declines. Meanwhile, WPI food inflation remained unchanged at 1.85% YoY in March.

Meanwhile, India's trade deficit narrowed to $20.67 billion in March 2026, down from $27.1 billion in February and $21.69 billion in the same month last year, marking the smallest gap since June 2025.

The improvement was driven by a rise in exports to $38.92 billion in March 2026 from $36.61 billion in February 2026, along with a decline in imports to $59.59 billion from $63.71 billion.

However, the outlook remains uncertain amid escalating geopolitical tensions in West Asia.

IMF lifts India growth outlook to 6.5%:

The International Monetary Fund (IMF) has marginally raised India's GDP growth forecast for 2026 to 6.5%, citing strong domestic demand and carryover momentum, while retaining the same growth estimate for 2027.

However, the IMF cautioned that escalating geopolitical tensions, particularly in the Middle East, could weigh on global growth and push inflation higher in the near term.

Globally, growth is projected at 3.1% in 2026 and 3.2% in 2027, with China expected to grow at 4.4% and the US at 2.3%, underscoring India's relatively stronger growth outlook.

Numbers to Track:

The yield on India's 10-year benchmark federal paper slipped 0.78% to 6.884 compared with the previous session close of 6.938.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.4400 compared with its close of 93.3500 during the previous trading session.

MCX Gold futures for the 5 June 2026 settlement fell 0.41% to Rs 154,179.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 98.06.

The United States 10-year bond yield added 0.28% to 4.264.

In the commodities market, Brent crude for June 2026 settlement jumped $1.85 or 1.95% to $96.64 a barrel.

Global Markets:

Most European shares declined on Wednesday as investors assessed developments in the U.S.-Iran conflict and the possibility of renewed peace talks.

Eurozone industrial production rose 0.4% month-on-month in February 2026, recovering after two consecutive months of decline and coming in above estimates of 0.3%. The growth was driven by non-durable consumer goods, capital goods, and intermediate goods, although energy output and durable goods declined. On a year-on-year basis, industrial production fell 0.6%.

Most Asian indices ended higher, tracking overnight gains on Wall Street, as oil prices eased on hopes of a diplomatic resolution to the Middle East conflict. Media reports indicated that a second round of talks between Washington and Tehran is under discussion, though no official schedule has been announced.

U.S. President Donald Trump said, We've been called by the other side. They'd like to make a deal very badly.

China's finance ministry is expected to issue 15.5 billion yuan-denominated treasury bonds in Hong Kong on 22 April.

On Wall Street, equities advanced on Tuesday as investors remained optimistic about a potential U.S.-Iran deal despite the recent breakdown in negotiations. The S&P 500 rose 1.18% to close at 6,967.38, remaining less than 1% below its 52-week high. The Dow Jones Industrial Average gained 317.74 points, or 0.66%, to 48,535.99, while the Nasdaq Composite climbed 1.96% to 23,639.08.

Investor sentiment was also supported by the March producer price index data. The index rose 0.5% month-on-month, significantly below expectations of a 1.1% increase, according to the Bureau of Labor Statistics, easing concerns of a sharp inflation spike driven by higher energy prices.

Stocks in Spotlight:

Anand Rathi Share and Stock Brokers surged 1.79% after the company's consolidated net profit surged 125.74% to Rs 41.56 crore on a 28.06% increase in total revenue from operations to Rs 255.66 crore in Q4 FY26 over Q4 FY25.

Ujjivan Small Finance Bank declined 3% after the Reserve Bank of India returned the lender's application for transition to a universal bank.

ICICI Prudential Asset Management Company (AMC) dropped 4.05% after the company reported a 16.76% drop in consolidated net profit to Rs 763.42 crore on a 0.15% decline in revenue from operations to Rs 1517.01 crore in Q4 FY26 over Q3 FY26.

ICICI Prudential Life Insurance Company advanced 2.61% after reporting a strong set of Q4 FY26 results, with standalone net profit rising 57.60% year-on-year to Rs 608.81 crore compared with Rs 386.29 crore in the same quarter last year. The company's total income witnessed a sharp loss of 78.98% YoY, reaching Rs 3,306 crore for the quarter ended 31 March 2026.

Shanti Gold International rose 4.58% after the company reported a robust operational performance for the quarter and full year ended 31 March 2026.

For Q4 FY26, the company reported volume growth of 25% YoY despite volatility in gold prices, reflecting resilient demand and strong client relationships. Revenue surged over 120% YoY during the quarter, supported by both higher volumes and favourable gold price trends. The company said this marked its strongest quarterly performance to date, aided by wedding season demand.

On a full-year basis, gold volumes rose 15% YoY in FY26, while revenues increased by more than 80% YoY, driven by steady demand from existing clients as well as new customer additions.

Eimco Elecon (India) slipped 7.70% after its standalone net profit tanked 57.22% to Rs 6.36 crore in Q4 FY26 as against Rs 14.87 crore in Q4 FY25. However, revenue from operations rose 4.04% to Rs 66.88 crore in Q4 FY26 as against Rs 64.28 crore in Q4 FY25.

Nuvoco Vistas Corporation shed 1.22%. The company's consolidated net profit slipped 14.99% to Rs 140.71 crore in Q4 FY26 as against Rs 165.54 crore in Q4 FY25. However, revenue from operations rose 8.69% year on year (YoY) to Rs 3,306.75 crore in Q4 FY26.

Swaraj Engines jumped 3.49% after the company reported a 20.12% jump in standalone net profit to Rs 54.56 crore in Q4 FY26, compared with Rs 45.42 crore in Q4 FY25. Revenue from operations rose 20.18% year-on-year to Rs 545.79 crore in the quarter ended 31 March 2026.

Just Dial slipped 4.97% after the company reported a 36.54% decline in standalone net profit to Rs 100 crore, despite a 6.23% increase in net revenue to Rs 307.24 crore in Q4 FY26 over Q4 FY25.

Den Networks shed 0.28%. The company reported a 38.25% decline in consolidated net profit to Rs 38.39 crore in Q4 FY26 as against Rs 62.18 crore posted in Q4 FY25. Revenue from operations slipped 3.03% year on year to Rs 240.57 crore in the quarter ended 31 March 2026.

Landmark Cars rose 3.42% after the company's total revenue from operations (including agency sales) jumped 17.50% to Rs 1,790 crore in Q4 FY26 compared with Rs 1,526 crore in Q4 FY25.

TANFAC Industries jumped 5.82% after the company announced that it has entered into a memorandum of understanding (MoU) for the supply of 5,000 MT per annum of its key fluorinated product with a large multinational company.

Ramco Systems rose 1.06% after the company announced the go-live of its Aviation Suite at the Engine Maintenance Center of Korean Air.

Shelter Pharma gained 1.58% after the company announced key senior-level appointments aimed at strengthening its sales and export functions.