The benchmark BSE Sensex staged a strong recovery in afternoon deals on Monday, April 6, surging 1,479 points from the day's lowest level to close at 74,083, while the NIFTY50 reclaimed its important psychological level of 22,966. According to Upstox, the day's rally came amid peace hopes in West Asia that led to a global rally since late Tuesday, spilling over to the Indian market. The index opened on a firm note and extended gains to hit an intraday high, reflecting strong buying momentum in the first half. However, profit booking at higher levels led to a decline, dragging the index to an intraday low, before it recovered partially and settled at 74,083, indicating some resilience despite late-session volatility. As per The Times of India, the day's rally added about ₹9.6 lakh crore to investors' wealth, with BSE's market capitalisation now at ₹422 lakh crore.
Defence and banking stocks emerged as the primary drivers of the broad-based rally, with Garden Reach Shipbuilders leading the Nifty 500 constituents with a 19.6% surge, followed by Ola Electric at 13.6% and Mazagon Dock Shipbuilders at 12.3%. Other defence stocks including Cochin Shipyard, Bharat Dynamics, and BEML also surged up to 12.2%. The banking sector staged a strong recovery with Punjab & Sind Bank rallying 6.6% and Bank of Maharashtra surging 5.8%. This was followed by UCO Bank, Central Bank of India, Indian Bank, Union Bank of India, and State Bank of India, all rising over 4%. According to Live Mint, the Nifty PSU Bank index emerged as the top performer, surging 3.70%, while the Nifty Media, Nifty Chemicals, Nifty Metal, Nifty Realty, Nifty Auto, and Nifty IT indices all rallied over 2%.
From the 30-Sensex firms, Trent emerged as the top gainer, surging 8% to ₹3,836 after the company reported strong Q4FY26 results with revenue rising 20% annually to ₹4,937 crore from ₹4,106 crore in the same period last year. For financial year 2025-26, Trent's revenue jumped 18% annually to ₹19,701 crore as against ₹16,668 crore in the previous financial year. The company opened a total of 22 Westside stores in the March quarter and 52 stores during FY26, along with 108 Zudio stores in the last quarter of FY26 and 198 stores in FY26. Other notable gainers included Shriram Finance, Axis Bank, Adani Enterprises, Titan, SBI Life, Ultratech Cement, and Larsen & Toubro, all rising between 3% and 4.35%. The sectoral performance showed BSE Services surging 4.99%, followed by PSU Bank at 3.66%, Industrials at 3.40%, Capital Goods at 3.29%, MidSmall Private Banks Quality Tilt at 3.07%, Consumer Discretionary at 2.79%, Commodities at 2.72%, and IT at 2.40%.
Technical Research Analyst Hitesh Tailor noted that the index has shown a sharp pullback from lower levels, suggesting the emergence of demand near key support zones, according to ET Now. He identified support in the 72,400–72,500 zone and resistance around 73,900–74,000, where any further upside could face supply and profit-booking pressure. Tailor indicated that with a strong rebound after recent weakness, the near-term outlook turns cautiously positive, though continuation of the up move will depend on sustained buying and the index's ability to move past resistance levels. According to Vinod Nair, Head of Research, Geojit Investments Limited, the recovery was driven by improving risk appetite following US President Donald Trump's remarks hinting at a potential resolution to the West Asia conflict, with broad-based buying lifting benchmark indices.
The recovery was aided by easing concerns around geopolitical tensions in the Middle East, which helped stabilise crude oil prices and improved overall risk appetite. A report suggested that Iran and the United States have received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz, as reported by Reuters. The framework to end hostilities was put together by Pakistan and exchanged with Iran and the US overnight, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement. Brent crude, the global oil benchmark, declined 0.22% to USD 103.7 per barrel. Foreign Institutional Investors (FIIs) offloaded equities worth ₹8,331 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹7,172 crore, according to The Times of India. The rupee started strengthening against the dollar while crude prices started coming down, with the rupee combined with RBI's decisions to rein-in speculative trades helping the day's rally.
Despite the Wednesday rebound, technical experts remain split on whether this is a structural reversal or a relief rally within a broader downtrend, according to ET Now. SEBI-registered analyst Vipin Dixena warned that the intraday structure continued a downtrend, reflecting 'lower highs and lower lows', with SENSEX struggling below the falling 50 EMA, indicating sustained bearish pressure. He suggested that any rise towards 73,800 is likely to face selling, while breakdown below 73,000 can extend the move towards 72,200–71,800, with bias remaining bearish. However, the strong rebound from the steepest monthly drop in six years in March and the broad-based nature of the rally suggest improved market sentiment for the new fiscal year. With the US market showing northward movement, market players expect another session of gains for Indian stocks on Friday, provided no negative news hits the ticker overnight.
