Indian Stocks Settle Lower, Still Post Weekly Gain

India’s BSE Sensex finished about 1.8% firmer at 73,273 on Wednesday, recovering from its steepest drop since 2020 in March, on easing geopolitical concerns. Global market sentiment improved after President Trump indicated that the US could exit Iran in two or three weeks, citing no compelling reason to continue the conflict. On the Iranian side, President Masoud Pezeshkian expressed willingness to end the war if security guarantees are ensured. Sentiment received an additional boost after the RBI postponed stricter broker funding norms to July 1, 2026. Most indices recorded gains, with Trent (+6.7%) emerging as the top performer. InterGlobe Aviation surged 6.2% on the back of falling oil prices and the naming of former British Airways chief Willie Walsh as its new CEO. Larsen & Toubro, with strong Middle East exposure, gained roughly 3%. Heavyweights Bajaj Finance and HDFC Bank rose 2.5% and 1.4%, respectively. Among the few losers, NTPC and Sun Pharma fell the most, each down 1.6%.

India’s BSE Sensex rose about 2.4% up at 73,657 on Wednesday, recovering from losses in the previous two sessions, driven by optimism that the conflict in the Middle East could end soon, which pushed oil prices lower. US President Trump said Washington could end its military actions on Iran within two to three weeks and added that Iran would not need to strike a deal for the conflict to wind down. Meanwhile, India’s final HSBC Manufacturing PMI for March is expected to ease at 55.2 on Thursday, revised from 53.8 in the preliminary data and down from February’s 56.9. On the corporate front, auto stocks drew focus as companies reported March sales, IndiGo appointed Willie Walsh as CEO, Jubilant FoodWorks announced it would end its Dunkin’ partnership after 2026, and Tenneco Clean Air India received a “buy” rating from Citi due to growth linked to its parent company. Among the early gainers were BSE (6.9%), Bharat Electronics (6%), HDFC Bank (2.9%), ICICI Bank (1.4%), and Vedanta (3.4%).

India’s BSE Sensex fell further to close about 2.2% lower at 71,947.6 on Monday, the lowest January 2024, extending last week's decline, amid persistent risk-off sentiment. Ongoing Middle East tensions and rising oil prices fuel fears of escalation as the Houthis join the conflict and the US deploys more troops. Losses were widespread, led by financials, after the central bank imposed stricter limits on onshore forex positions to protect the battered rupee. ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, State Bank of India and Bajaj Finance fell in the range of 2-5.1%. Among other laggards, Maruti Suzuki, Mahindra & Mahindra, Asian Paints, L&T, UltraTech Cement, Titan Company and Bharti Airtel fell up to 2.9%. The index slipped over 11% in March, marking its steepest monthly drop since March 2020, weighed by soaring crude oil prices and sustained foreign outflows. The Indian equity markets will be closed on Tuesday, March 31, in observance of Shri Mahavir Jayanti.