Sensex Retreats as Ceasefire Doubts Weigh

India’s BSE Sensex fell about 0.6% down at 77,072 on Thursday, retreating from a recent rally and snapping a five-session winning streak as lingering geopolitical tensions weighed on sentiment amid renewed uncertainty over a US-Iran ceasefire, dampening optimism for a continuation of the rally. Broader Asian markets also turned cautious after reports of Iran maintaining strategic control over the Strait of Hormuz, which pushed oil prices higher again, alongside continued attacks in the Gulf region despite the temporary truce. Financials and technology led the losses, while health services, retail trade, and non-energy minerals stocks partially offset the downside. HDFC Bank (-1.2%), ICICI Bank (-1%), and Infosys (-2%) fell, while BSE (+1.2%), KEC International (+3.8%), and Bharat Electronics (+1.6%) rose. Meanwhile, the broader index is up 5.1% so far this week.

India’s BSE Sensex surged roughly 4% to close at 77,563 on Wednesday, the highest in a month, marking the fifth day of advances, buoyed by the temporary US-Iran ceasefire, along with a sharp drop in oil prices. President Trump suspended planned strikes following Iran’s 10-point proposal, including safe passage through the Strait of Hormuz, with negotiations scheduled in Islamabad on April 10. Market sentiment was also supported by the RBI's decision to hold rates steady and maintain its neutral policy stance. Gains were seen across most sectors. Among equities, IndiGo led the gains with a 8.2% surge, reflecting relief amid lower oil prices. Other major gainers included L&T, Adani Ports, Bajaj Finance, Bajaj Finserv, UltraTech Cement, Maruti Suzuki, Mahindra & Mahindra, Axis Bank, Eternal, and HDFC Bank, which rose between 5% and 7.6%. Tech Mahindra (-1.5%), Sun Pharma (-0.3%) and Power Grid (-0.2%) were the only losers.

The SENSEX Index gained 3001 points or 4.02 percent on Wednesday to close at 77617 points. Gains were led by Tata Motors (8.70%), Larsen & Toubro (7.70%) and Bajaj Finance (7.17%).