Asian markets staged a broad-based rally on Wednesday, with South Korea's Kospi jumping 3.0% to 6,145.18 and Hong Kong's Hang Seng edging up 0.7% to 26,045.80, as hopes for renewed US-Iran talks lifted investor sentiment across the region. According to Associated Press, the rally echoed gains on Wall Street, where the S&P 500 added 1.2% and the Nasdaq composite climbed 2%, with the S&P 500 just 0.2% below its record set in January. The positive momentum was driven by oil prices easing on hopes that the United States and Iran may try again on talks to end their war, with Brent crude adding 48 cents to USD 95.27 after falling 4.6% the previous day. While oil prices remain above the roughly USD 70 level from before the war began in late February, they are well below the peak level of USD 119, providing relief to businesses and helping ease inflation concerns.
Indian equities staged a strong recovery on Wednesday, with both the Nifty 50 and S&P BSE Sensex rallying nearly 2% as diplomatic developments in West Asia lifted investor sentiment. According to reports from Mint, the mood turned distinctly risk-on amid growing signs that the conflict may be approaching a resolution. US President Donald Trump suggested the war is 'close to over,' even hinting at a second round of face-to-face talks with Iran in Pakistan in the coming days. Since the conflict broke out, both the Nifty 50 and Sensex have slipped nearly 4%, underscoring the pressure on equities, while the India VIX has surged over 36%, a clear sign of heightened nervousness and volatility in the market. The latest rally was further boosted by crude oil prices falling below $100 per barrel as hopes for US-Iran peace talks eased geopolitical tensions.
The ongoing recovery structure remains firm, with Nifty rebounding over 2100 points from its recent lows despite intermittent volatility, signalling a potential shift in short-term trend, believes Sudeep Shah, head-Technical and Derivatives Research at SBI Securities. As reported by Mint, the index has closed above its 50-day EMA (Exponential Moving Average) for the first time since 23 February, 2026, which indicates sustained buying interest from lower levels. The Nifty 50 ended 1.6% higher at 24,231.30 points and Sensex closed at 78,111.24 points, with the 24070-24050 zone acting as immediate support and 24350-24400 zone as immediate resistance. A sustained move above this band could lead to further upside toward the 24550 level. According to latest reports, the Nifty may find support near 24,080, with possible upside targets around 24,900.
According to Mint reports, a bounce back was visible across the board with all sectors ending in the green. Among the top sectoral performers on the NSE, Nifty Consumer Durables led at 2.9% followed by Nifty IT at 2.8%. The broader market outperformed the headline indices with Nifty Smallcap 250 settling 2.3% and Nifty Midcap 100 ending 2.4%. According to Shrikant Chouhan, head-Equity Research at Kotak Securities, currently the market is largely reacting to developments on the war front and movements in Brent crude prices, with investors appearing relatively unconcerned about Q4 earnings as results are broadly expected to be in line with estimates. All major sectors, including IT, Metals, PSU Bank, Auto, and Oil & Gas, traded higher in the latest session. The top Nifty 50 gainers included InterGlobe (4.77%), Eternal (4.43%), Kwality Wall's (4.13%), Power Grid (4.03%), Tech Mahindra (3.38%), TCS (3.33%), Adani Ports SEZ (3.18%), L&T (3.09%), Asian Paints (3.01%), and Kotak Bank (2.83%).
The positive market mood was significantly boosted by the International Monetary Fund's (IMF) April 2026 World Economic Outlook, which confirmed India as the world's fastest-growing major economy. The IMF projected a real GDP growth rate of around 6.5% for fiscal years 2026 and 2027, with these slightly revised forecasts highlighting India's strength despite global economic pressures. The IMF also placed India as the world's fourth-largest economy by nominal GDP in 2026, showing its growing economic influence. This positive view of India's economy supports the stock market's rise, with such rallies after geopolitical stress and market drops often lasting if economic fundamentals stay strong. The current market climb follows a big sell-off in March 2026, with indices gaining up to 9% in April as hopes rose for an end to the US-Iran conflict.
As reported by Mint, FPIs were net buyers at ₹666.15 crore, while DIIs were net sellers at ₹568.98 crore, according to provisional data from BSE. Manish Bhandari, Founder and CEO of Vallum Capital Advisors, expects markets to stay largely range-bound until September 2026, but believes 'we are nearing the end of the consolidation.' According to Aniruddha Sarkar, co-founder & chief investment officer at Equinova Investment Managers, March quarter earnings and management commentary for June quarter should be closely monitored. The Q4 FY26 earnings season is picking up speed, with results from major banks like HDFC Bank and ICICI Bank anticipated to influence stock performance. Despite the current optimism, underlying risks remain as FIIs have continued selling shares, offloading over $45 billion in the 18 months before October 2024, and the Nifty's forward P/E in March 2026 was 17.7x, 15% below its long-term average.
