Closing Bell: Indian Benchmark Indices Kick Off FY27 with Over 1.5% Gain on April 1, 2026

Market Update at 04:09 PM: India’s benchmark indices, the Nifty 50 and the Sensex, kicked off Financial Year 2027 on a strong note on Wednesday, April 1, rising over 1.5 per cent, supported by a global rally amid signs of easing tensions in the Middle East.

Sentiment improved after U.S. President Donald Trump indicated that Washington could end its military attacks on Iran within two to three weeks. He added that Tehran would not need to strike a deal as a prerequisite for the conflict to de-escalate. He is expected to provide a further update on the situation in an address scheduled for Thursday morning IST. The easing geopolitical tensions are seen as positive for India, given its heavy dependence on energy imports.

The Nifty 50 opened over 500 points higher, tracking strong global cues. Although the index pared some early gains during the session, it still managed to close firmly in positive territory. By the end of the day, the Nifty 50 rose 348 points, or 1.56 per cent, to settle at 22,679.40. The Sensex, however, showed a contradictory move, declining by 1,186.77 points, or 1.65 per cent, to close at 73,134.32.

Volatility cooled significantly, with the India VIX plunging over 10 per cent to near the 25 mark, indicating easing market fear. This comes after a sharp correction in March, where both the Nifty 50 and Sensex had fallen more than 11 per cent each, marking their worst monthly performance in six years due to elevated crude prices linked to the Iran conflict.

In the currency market, the Indian rupee weakened to around Rs 93.5 per USD, impacted by persistent foreign outflows and high crude oil prices. Brent crude, the global oil benchmark, hovered near USD 100 per barrel, continuing to weigh on macroeconomic sentiment.

On the sectoral front, 10 out of 11 key indices ended in the green, while broader markets outperformed. The Nifty Midcap index gained 2.22 per cent and the Nifty Smallcap 100 index rose 3.33 per cent.

However, there was inconsistency in sector performance data. While earlier gains were seen, the Nifty PSU Bank index ultimately declined 3.7 per cent, with all constituents ending in the red, snapping its two-day winning streak after recovering from a five-month low. The Nifty Pharma index was the only sector to close lower, down 0.99 per cent.

Pharma stocks came under pressure due to pricing concerns in the GLP-1 segment. Novo Nordisk cut semaglutide prices by up to 48 per cent following patent expiry and increased competition from low-cost generics, impacting margins. Additionally, stricter government regulations on weight-loss drugs and increased scrutiny raised concerns about future growth in the segment.

Among individual stocks, Larsen & Toubro gained about 3 per cent, supported by its strong exposure to the Middle East. IndiGo shares surged 6 per cent after appointing industry veteran Willie Walsh as its new chief executive. In contrast, Hyundai Motor India declined 3.3 per cent after reporting weaker-than-expected March sales.

In terms of index contributors, Reliance Industries (+37.38 points), HDFC Bank (+35.83 points), and State Bank of India (+34.83 points) were the top positive drivers for the Nifty 50. On the downside, Dr. Reddy’s Laboratories (-6.03 points), Sun Pharmaceutical Industries (-6.78 points), and NTPC (-6.23 points) weighed on the index.

Market breadth remained strong despite mixed signals. Out of 3,322 stocks traded on the NSE, 2,936 advanced, 283 declined, and 103 remained unchanged. A total of 29 stocks hit their 52-week highs, while 79 touched their 52-week lows. Additionally, 312 stocks were locked in Upper Circuits, compared to 37 in Lower Circuits.

Market Update at 2:31 PM: Indian equity benchmarks extended their gains on Wednesday, supported by improving global risk sentiment amid hopes of easing tensions in the Middle East.

The Nifty 50 was trading 392 points or 1.75 per cent higher at 22,723.40 levels, while the Sensex surged 1,363 points or 1.89 per cent to 73,310 levels as of 2:00 PM.

Investor sentiment strengthened after U.S. President Donald Trump indicated that the U.S. could exit Iran in two or three weeks, citing no compelling reason to continue the conflict. On the other hand, Iranian President Masoud Pezeshkian reportedly expressed willingness to end the war, provided there are assurances against future aggression.

Broader markets outperformed the frontline indices, reflecting strong participation across segments. The Nifty MidCap index advanced 3.27 per cent, while the Nifty SmallCap index gained 4.11 per cent.

On the sectoral front, the Nifty PSU Bank index led the rally with a 4 per cent rise. The Nifty Metal and Nifty Media indices also posted robust gains of over 3–4 per cent each. However, the Nifty Healthcare index lagged the broader market, emerging as the only notable underperformer.

In the commodities market, Brent crude pared its earlier gains during the late Asia session. The April contract was trading at USD 103.82 per barrel, down 0.14 per cent.

Market Update at 12:33 PM: Indian equity benchmarks pared some gains from the day’s high on Wednesday, weighed down by weakness in healthcare stocks, even as overall sentiment remained positive.

The Nifty 50 was trading 2.14 per cent, or 478.60 points, higher at 22,810, while the Sensex gained 2.31 per cent, or 1,659.23 points, to trade at 73,632.38.

Market sentiment was supported by easing geopolitical concerns. U.S. President Donald Trump indicated that the U.S. could exit Iran within two to three weeks, citing no strong reasons to continue the conflict. This development boosted global risk appetite.

On the other hand, Iranian President Masoud Pezeshkian, as per reports, stated that Iran is willing to end the war, provided there is a guarantee that such aggression will not be repeated, further adding to hopes of de-escalation.

The Nifty India Volatility Index (VIX) declined sharply by 15.2 per cent to 23.65, indicating that fears around near-term uncertainty among traders have subsided.

In the broader market, indices also trimmed Intraday gains but remained firmly in the green. The Nifty MidCap and Nifty SmallCap indices were trading higher by 2.41 per cent and 2.95 per cent, respectively.

Sectorally, the Nifty Metal index emerged as the top gainer, while Nifty IT and Nifty Media also outperformed. However, Nifty Healthcare underperformed and capped overall gains. Notably, IT stocks showed mixed performance during the session.

Meanwhile, Brent crude oil prices erased earlier gains in the late Asia session. The April contract was trading at USD 103.82 per barrel, down 0.14 per cent.
 

Market Update at 09:32 AM: Indian equity benchmarks opened sharply higher on Wednesday, tracking improved global risk sentiment after U.S. President Donald Trump indicated that the U.S.-Iran war could end within two to three weeks.

At 9:17 AM, the Nifty 50 was trading 2.21 per cent or 493.95 points higher at 22,825.58, while the Sensex surged 2.38 per cent or 1,710.86 points to 73,660.41.

The rally comes amid easing geopolitical concerns. Trump stated that the U.S. could withdraw from Iran within two to three weeks, suggesting there may be no strong reason to continue the conflict. On the Iranian side, President Masoud Pezeshkian reportedly expressed willingness to end the war, provided there are assurances that such aggression will not recur.

In the commodities market, Brent crude prices edged higher during the Asian session after data indicated a sharp drop in U.S. crude oil production. According to a Reuters report, U.S. crude output declined by 410,000 barrels per day to 13.25 million barrels per day in January, marking the steepest fall since February 2025. Brent crude’s April contract was trading at USD 105.46 per barrel, up 1.43 per cent.

Precious metals also saw gains, with gold and silver futures rising nearly 1 per cent each, supported by expectations of a potential resolution to the Middle-East conflict.

Pre-Market Update at 7:53 AM: The Indian benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, tracking a strong rally in global markets amid growing optimism over a potential end to the U.S.–Iran conflict. As of 7:30 am, GIFT Nifty was trading around the 22,776 level, up by nearly 300 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market.

Global cues remain supportive, with Asian markets trading in positive territory and Wall Street witnessing a sharp rally overnight. The S&P 500, Nasdaq, and Dow Jones posted their biggest single-day gains since May 2025, boosting investor sentiment across global equities.

From April 1, 2026, higher Securities Transaction Tax (STT) on futures and options (F&O) has come into effect, as announced in Budget 2026 to curb speculative trading. STT on futures has been increased to 0.05 per cent from 0.02 per cent, while options STT has been raised to 0.15 per cent from 0.1 per cent. This move significantly raises trading costs and nearly doubles breakeven levels for futures traders, potentially impacting volumes and putting pressure on foreign portfolio investor (FPI) flows.

Asian markets rebounded sharply on Wednesday amid hopes of de-escalation in the U.S.–Iran conflict. Japan’s Nikkei 225 surged 3.96 per cent and the Topix gained 3.61 per cent. South Korea’s Kospi jumped 6.26 per cent, while the Kosdaq rose 5.28 per cent. Hong Kong’s Hang Seng index was also trading over 2 per cent higher.

Among key global triggers, U.S. President Donald Trump indicated that American military operations against Iran could end within the next two to three weeks, suggesting that a formal agreement may not be necessary for de-escalation. Meanwhile, Japan’s manufacturing activity continued to expand in March, with the final S&P Global Manufacturing PMI at 51.6, easing from February’s 53.0 but slightly above the preliminary estimate of 51.4.

Crude oil prices remained elevated amid geopolitical tensions. Brent crude gained 2.37 per cent to USD 104.51 per barrel, while U.S. WTI crude rose 1.45 per cent to USD 98.65. The U.S. dollar remained largely steady, with the dollar index slipping 0.03 per cent to 99.70.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.77. On the Put side, the 22,500 strike holds significant open interest, making it a key support level, followed by 22,300. On the Call side, the 23,000 strike shows strong resistance, indicating that upside may face selling pressure while 22,500 remains a crucial downside level.

Technically, Friday’s low of 22,800 is likely to act as immediate resistance for the Nifty 50. A fall below 22,500 could open the door for a test of 22,250. Immediate support levels are placed at 22,460 and 22,283.

There are no stocks in the F&O ban for April 1.

Institutional flows indicate continued selling pressure from foreign investors. On March 30, FIIs sold equities worth Rs 11,163.06 crore, while DIIs bought shares worth Rs 14,894.72 crore. For March 2026, FIIs recorded a total outflow of Rs 122,540.41 crore and have remained net sellers for 21 consecutive sessions.

The Indian stock market remained closed on March 31 due to Mahavir Jayanti. On Monday, markets ended sharply lower amid geopolitical concerns. The Sensex fell 1,635.67 points, or 2.22 per cent, to close at 71,947.55, while the Nifty 50 declined 488.20 points, or 2.14 per cent, to settle at 22,331.40.

On Wall Street, U.S. markets closed significantly higher on Tuesday. The Dow Jones surged 2.49 per cent to 46,341.51, the S&P 500 rose 2.91 per cent to 6,528.52, and the Nasdaq jumped 3.83 per cent to 21,590.63. Despite the rally, the indices ended the first quarter in the red.

Among major stocks, Nvidia rose 5.6 per cent, Alphabet gained 5.1 per cent, Meta surged 6.7 per cent, Microsoft advanced 3.12 per cent, Apple climbed 2.90 per cent, Amazon added 3.66 per cent, and Tesla increased 4.64 per cent.

In commodities, gold prices extended gains for a third straight session, rising 0.47 per cent to USD 4,694.66 per ounce, while silver declined 0.77 per cent to USD 74.55 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.