Sensex Falls After Two-Day Rebound

India’s BSE Sensex fell about 1.3% to around 74,335 in early trade on Friday, reversing the gains of the past two sessions as losses in global markets and volatility in oil prices continued to weigh on sentiment amid the prolonged US-Iran conflict. US President Donald Trump announced a 10-day pause in U.S. strikes on Iran’s energy infrastructure, saying it was requested by Tehran to allow more time for diplomacy, extending the pause until April 6. However, Iran denied the claim and has publicly dismissed US proposals, leaving the status of talks unclear. Trading was mostly weak across sectors, led by financials, energy, and consumer stocks, with only technology and miscellaneous posting modest gains. Among the early laggards were HDFC Bank (-2.1%), Shriram Finance (-3.7%), Reliance Industries (-2.4%), and Bajaj Auto (-1.2%). The index fell 0.2% for the week, with its month-to-date loss at 8.5% so far.

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. Indian stock markets are closed on Thursday, March 26, in observance of the Ram Navami holiday and will resume on Friday.

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%).