Sensex, Nifty Rebound Sharply Amid Easing Iran Tensions

The BSE Sensex opened at 73,630.84, surging 1,683.29 points or 2.34% at 9:17 am, compared to its previous close of 71,947.55 on Monday. Similarly, the NSE Nifty 50 began the session at 22,823.05, up 491.65 points or 2.20%, after ending Monday at 22,331.40.

In the currency market, the Indian Rupee opened weaker at 96.71 against the US dollar, compared to its previous close of 93.57.

Meanwhile, crude oil prices remained relatively stable, with Brent crude at USD 105.65 and WTI crude at USD 107.17, slightly below Monday’s close of USD 107.39.

Global cues remained supportive, with Asian markets rallying on hopes of a diplomatic “offramp” in the ongoing Iran conflict. Equities across Japan, South Korea, and Australia advanced, lifting the broader MSCI Asia Pacific Index by 1,6%.

Investor sentiment improved after indications that geopolitical tensions could ease, potentially restoring stability to energy and equity markets after weeks of volatility.

Ajay Bagga, market and banking expert, highlighted the shift in sentiment, stating that a “Trump Peace” narrative has sparked a relief rally across global risk assets after a turbulent March.

He added that a potential de-escalation timeline has been pivotal, noting that US operations in Iran could conclude within 2–3 weeks if a negotiated settlement is reached.

Bagga also pointed to signals from Iran, suggesting that Tehran’s willingness to consider a truce marks a strong indication that both sides are seeking to end hostilities.

Reflecting on recent trends, he said March was one of the worst months for global equities since 2020, with Indian markets correcting nearly 10% amid disruptions in the Strait of Hormuz.

Looking ahead, he cautioned that volatility may persist until there is clarity on reopening key shipping routes.

Ponmudi R, CEO of Enrich Money, said the sharp market rebound is supported by strong global cues and easing crude oil prices.

He noted that US markets closed strongly, with the S&P 500 and Nasdaq posting gains, while Asian markets also opened higher, signalling a positive start for Indian equities.

However, he warned that the ongoing US-Israel-Iran conflict remains a key risk, keeping sentiment cautious and event-driven.

He also highlighted continued selling by Foreign Institutional Investors, with outflows exceeding Rs 1 lakh crore in March, and noted the weakening of the Indian rupee.

Ponmudi added that Bank Nifty is expected to open above 51,000, with 51,600 acting as immediate resistance, and a sustained move above this level needed to confirm a shift in sentiment.

On the domestic front, Shrikant Chouhan of Kotak Securities pointed to the severity of Monday’s sell-off, noting that only 73 stocks advanced against 2,753 declines.

He said key support levels for Nifty and Sensex were breached in the previous session, which will now act as resistance in the short term.

Overall, the strong opening reflects a mix of global relief and technical rebound, though markets remain cautious amid ongoing geopolitical and macroeconomic uncertainties.