Indian equity markets witnessed a significant rally on April 17, with GIFT Nifty Futures surging over 350 points tracking a 10% sharp correction in oil prices following Iran's announcement of reopening the Strait of Hormuz. According to latest reports, Iran's decision to open the Strait of Hormuz route for all commercial ships during the 10-day ceasefire has brought relief to oil importers, including India, which imports 85-90% of its oil requirements. The Strait of Hormuz, a crucial waterway through which approximately 20% of the world's oil supply is transited, had been blocked by Iran since the beginning of the West Asia war, with traffic almost halted even after the announcement of a ceasefire between the US and Iran on April 7. Brent crude, the international oil benchmark, tumbled 9.65% to $88.72 a barrel, marking a significant correction from the year's high of $119.5 on March 9.
Indian equity markets extended their rally for the second consecutive week, with the NSE Nifty rising 156.8 points or 0.65% to close at 24,354 and the BSE Sensex gaining 505 points or 0.65% to end at 78,494. According to ETCFO, both indices gained about 1.3% each this week, extending last week's 6% surge, their strongest showing in five years. As per WealthMills Securities, "After the roller-coaster moves in March, domestic markets are beginning to find their footing in April on expectations that tensions in the Middle East may ease." The Nifty had lost nearly 11% in March, its worst monthly fall since the Covid, as the rupee plunged in FY26 the most in 14 years in a pronouncedly backloaded retreat. GIFT Nifty Futures traded at 24,812, up 392 points (1.61%), indicating a positive trend in Indian equities.
The recent gains were primarily driven by expectations that ongoing peace talks between Iran and the US would move beyond tokenism into durable peace for the region that supplies energy to the world's fastest-expanding major economy. As reported by ETCFO, a 10-day ceasefire between Lebanon and Israel went into effect on Thursday and President Donald Trump said the next U.S.-Iran meeting may take place over the weekend. This development has boosted investor confidence and led to gains across major indices. As per WealthMills Securities, "While markets are not completely out of the woods, any tangible signs of de-escalation or a peace framework from the U.S.-Iran talks could sustain momentum." The GIFT Nifty Futures rally of over 350 points on April 17 demonstrates the market's strong response to the strategic developments.
Beyond the benchmark indices, broader market segments showed exceptional performance with 15 of 16 major sectors advancing this week. According to ETCFO, the broader small-caps and mid-caps added 4.3% and 3.6% respectively. The Nifty Midcap and Smallcap 100 indices surged 1.27% and 1.48% respectively, taking the total gains to over 15% from the April low. Foreign Institutional Investors (FIIs) demonstrated renewed confidence in Indian markets, with FIIs net buying more than ₹1,700 crore worth of shares in the last three days and bringing the net outflow for the week to around ₹250 crore in the cash segment, the lowest after several weeks. This compares favorably to March when FIIs net offloaded more than ₹1.22 lakh crore worth of Indian equities, the biggest-ever monthly selling, followed by over ₹39,000 crore of outflow in the current month.
Despite the positive momentum, analysts caution about potential resistance levels ahead while noting the significant technical developments. As reported by The Economic Times, Mehul Kothari, DVP - technical research, Anand Rathi Share and Stock Brokers, noted that the Nifty index is now approaching a crucial resistance zone of 24,300-24,500, where profit booking could emerge. However, considering the latest developments, the possibility of the Nifty 50 hitting or surpassing long-term moving averages (100 and 200-day EMAs) or 24,700-24,800 levels on coming Monday cannot be ruled out, while the immediate support is placed at 24,200, according to technical experts. If this positive sentiment continues without any negative news or commentary from Trump or Tehran over the weekend, the Indian equity markets on Monday (April 20) may start the week on a healthy note amid a big relief in terms of declining oil prices.
