Benchmarks climb for third day, Nifty crosses 24,550 as US-Iran hopes lift sentiment

Domestic benchmark indices powered ahead for a third straight session on Tuesday, driven by broad-based buying and firmer global cues. Sentiment lifted sharply after reports of fresh US-Iran talks rekindled hopes of easing geopolitical tensions, while cooling crude oil prices added fuel to the rally.

The Nifty surged past the 24,550 mark, with FMCG and private banking stocks leading the charge. Banking stocks advanced after the RBI relaxed forex restrictions. Small-cap stocks outpaced the broader market.

Investors are now turning their attention to Q4 earnings, while closely monitoring developments in the US-Iran conflict, crude oil prices and currency trends for near-term cues.

The S&P BSE Sensex jumped 753.03 points or 0.96% to 79,273.33. The Nifty 50 index advanced 211.75 points or 0.87% to 24,576.60. In the three consecutive trading sessions, the Sensex and Nifty jumped 1.65% and 1.57%, respectively.

Hindustan Unilever (up 3.13%), ICICI Bank (up 2.41%) and HDFC Bank (up 2.04%) supported gains in Nifty today.

In the broader market, the BSE 150 MidCap Index gained 0.55% and the BSE 250 SmallCap Index surged 0.71%.

The market breadth was positive. On the BSE, 2,531 shares rose and 1,760 shares fell. A total of 177 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 6.69% to 17.53.

Economy:

India's Index of Eight Core Industries (ICI) contracted 0.4% in March 2026 on a year-on-year basis, according to provisional data. The decline was driven by lower output in fertilisers, crude oil, coal and electricity, which dragged overall performance.

For the full financial year 2025-26, core sector growth stood at 2.6% compared with the previous year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.04% to 6.887 compared with previous session close of 7.890.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.4500 compared with its close of 93.1600 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement shed 0.17% to Rs 153,680.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.22% to 98.27.

The United States 10-year bond yield rose 0.12% to 4.252.

In the commodities market, Brent crude for June 2026 settlement fell 82 cents or 0.86% to $94.66 a barrel.

Global Markets:

US Dow Jones futures jumped 304 points, signalling a firm start for Wall Street later today.

European shares advanced on Tuesday as investors assessed developments ahead of the deadline for the two-week US-Iran ceasefire.

In the UK, unemployment eased to 4.9% in the three months ended February, down from 5.2% in January 2026, according to the Office for National Statistics. Wage growth rose 3.6% year-on-year.

Asian indices closed higher, tracking optimism around a possible resolution to the Middle East conflict, even as tensions between the US and Iran persisted.

Iran's Parliament Speaker Mohammad Bagher Ghalibaf criticised the US stance, saying attempts to pressure negotiations would not be accepted. He added that Iran was prepared to escalate if required.

The remarks followed US President Donald Trump's warning that military action could intensify if no agreement is reached before the ceasefire deadline. This comes even as a US delegation is expected to head to Pakistan for a possible second round of talks.

Overnight, Wall Street ended marginally lower amid rising tensions. The S&P 500 slipped 0.24% to 7,109.14, while the Nasdaq Composite fell 0.26% to 24,404.39. The Dow Jones Industrial Average edged down 0.01% to 49,442.56. In contrast, the Russell 2000 gained 0.58% to 2,792.96, hitting a record closing high.

Markets remain cautious, with investors finding it difficult to fully price in the potential downside risks from the ongoing conflict despite the recent rebound in equities.

Stocks in Spotlight:

Persistent Systems rose 0.25%. The company's net profit stood at Rs 529.3 crore in Q4 FY26, up 33.7% year-on-year and 20.4% sequentially. Revenue came in at Rs 4,055.9 crore, rising 25.1% YoY and 7.4% QoQ.

For the full financial year FY26, the company reported revenue of Rs 14,748.5 crore, up 23.5% YoY. Net profit rose 33.2% to Rs 1,865.1 crore, while PBT increased 32.3% to Rs 2,411.2 crore.

The company noted that margins were impacted by a one-time effect from new labour codes, though underlying growth remained strong.

The board recommended a final dividend of Rs 18 per share. Order booking remained strong during the quarter, with total contract value (TCV) at $600.8 million and annual contract value (ACV) at $445.1 million, indicating sustained deal momentum.

Nestle India shares surged 7.09% after the company's standalone net profit rose 25.8% YoY and 9.4% QoQ to Rs 1,114.1 crore in Q4 FY26, compared with Rs 885.4 crore in Q4 FY25 and Rs 1,018.1 crore in Q3 FY26. Revenue from operations stood at Rs 6,747.8 crore, up 22.6% YoY and 19.1% QoQ, versus Rs 5,503.9 crore a year ago and Rs 5,667.0 crore in the previous quarter. The board recommended a final dividend of Rs 5 per equity share of face value Re 1 each for FY26.

Bank of Maharashtra rallied 5.95% after reporting a robust performance in Q4 FY26, with standalone net profit increasing 34.89% year-on-year to Rs 2,014.09 crore from Rs 1,493.08 crore in the same quarter last year. Total income for the quarter ended 31 March 2026 increased 12.79% YoY to Rs 8,693.04 crore.

PNB Housing Finance surged 8.09% after the company reported 19.2% rise in consolidated net profit to Rs 656 crore on a 10.8% increase in net interest income to Rs 813 crore in Q4 FY26 as compared with Q4 FY25.

Eris Lifesciences declined 3.81% after HALMED inspected the manufacturing facilities of company's wholly owned subsidiary, Swiss Parenterals located in Ahmedabad, Gujarat. HALMED (Agency for Medicinal Products and Medical Devices of Croatia) inspected the unit-1 (general liquid and dry powder injectables) and Unit-2 (betalactam dry powder injectables) from 9 to 13th March 2026. Following the inspection, the company received a list of non-compliance observations for Unit-1 and Unit-2.

Rolex Rings surged 16.43% after the company said its board will consider a share buyback proposal on 23 April 2026. As of March 2026, promoters held a 52.24% stake in the company.

E2E Networks hit an upper circuit of 5% after the company reported standalone net profit of Rs 6.43 crore in Q4 FY26 compared with net loss of Rs 5.69 crore in Q3 FY26. Revenue from operations jumped 36.59% QoQ to Rs 95.64 crore in Q4 FY26. On year on year (YoY) basis, the company's consolidated net profit declined 51.37% while revenue from operations surge 185.75% in Q4 FY26.

Meanwhile, the company's board approved the proposal to sub-divide each existing equity share of face value Rs 10 each into 10 equity shares of face value Rs 1 each.

Apeejay Surrendra Park Hotels (ASPHL) rallied 3.15% after the company signed two hotel management agreements for Zone Connect by The Park properties in Ayodhya and Ujjain.

Nelco jumped 5.92% after reporting a consolidated net profit of Rs 1.09 crore for Q4 FY26, compared with a net loss of Rs 4.08 crore in the year-ago period. Total income jumped 15.60% YoY to Rs 81.11 crore in Q4 FY26, from Rs 70.16 crore in the corresponding quarter last year.

AAVAS Financiers jumped 3.28%. The company said that its board has accepted the resignation of Sachinderpalsingh Jitendrasingh Bhinder from the position of managing director & chief executive officer of the company, with effect from close of business hours on 20 April 2026.

The board has also approved appointment of Manu Yeshpal Singh as the managing director & chief executive officer of the company, with effect from 21 April 2026.