Indian Stocks Rebound

Indian stocks closed sharply higher on Wednesday, aligned with a positive session for global equities as signs that the US aims to de-escalate its conflict with Iran lowered oil prices and India's inflation outlook. The S&P/BSE Sensex rose 1.6% to 75,264 and the NSE Nifty 50 jumped 1.7% to 23,306. Reports indicated that the US proposed terms for a ceasefire with Iran, reflecting their aim to reintroduce energy exports from the region on concerns that an oil supply crunch may raise inflationary pressures. Industrial conglomerates and banks, which are sensitive to benchmark borrowing costs, led the gains with Titan Company, UltraTech, Larsen and Toubro, and Bajaj Finance jumping more than 4%. In turn, tech resumed its slide following the poor session for AI companies in the US, with Tech Mahindra and TCS closing firmly in the red.

The SENSEX Index went up by 1216 points or 1.64 percent on Wednesday to close at 75285 points. The rise was led by Titan Company (4.71%), UltraTech Cement (4.05%) and Larsen & Toubro (3.99%).

India’s BSE Sensex rose about 1.3%, up at 75,042 on Wednesday, extending gains from the previous session, as the benchmark tracked advances across Asian markets amid reports of a possible US-proposed ceasefire with Iran, which helped ease concerns over oil prices. However, sentiment remains mixed due to lingering geopolitical tensions and uncertainty over the progress of talks. Indian markets have fallen about 9% this month, with the rupee hitting a record low and driving roughly $11.37 billion in outflows in March. On the data front, India’s HSBC composite PMI flash fell to 56.5 in March from 58.9 in February and below market expectations of 58.7, marking the weakest expansion since October 2022 amid the ongoing Middle East conflict. All equity sectors traded higher, led by heavyweight financials and consumer stocks. Early gainers included HDFC Bank (+2.7%), Sammaan Capital (+10%), BSE (+1.3%), Eternal (+2.2%), and Mahindra & Mahindra (+2.6%).