Nifty and Sensex Soar up to 1.24%; What’s Driving the Rally?

Synopsis : Indian markets rebounded as Nifty gained 275.75 points (1.15%), Sensex rose 960.09 points (1.24%), and Bank Nifty jumped 921.70 points (1.65%) after Donald Trump signaled the Iran conflict could end soon and crude eased to $84.70.

The Indian stock markets witnessed a bullish trend today, supported by a combination of favorable domestic and global developments that boosted investor confidence. Market gains are generally influenced by factors such as strong corporate earnings, supportive government initiatives, easing inflation pressures, stable interest rate expectations, and positive trends in global markets. When investors become optimistic about economic growth and liquidity conditions, buying activity tends to increase, which in turn drives major indices higher.

The Nifty opened today at 24,280.80, higher than its previous closing level of 24,028.05, indicating strong positive momentum at the start of the session. During intraday trade, the index climbed further to touch a high of 24,303.80. Compared to the previous close, this represents a gain of 275.75 points, translating to an increase of about 1.15 percent, highlighting a solid rebound in the broader market.

The Bank Nifty began the session at 56,583.85, compared to its previous closing level of 56,019.80, reflecting a strong opening in banking stocks. The index extended its gains during the session and reached an intraday high of 56,941.50. From the previous day’s close, this marks an increase of 921.70 points, or approximately 1.65 percent, indicating strong buying interest in the banking sector.

The Sensex opened higher at 78,375.73 against the previous close of 77,566.16, signaling a positive start for the broader market. The index continued to move upward during the session and touched a high of 78,526.25. This represents a gain of 960.09 points from the previous close, translating to an increase of around 1.24 percent, reflecting a strong rebound in stocks.

Trump’s Iran Statement

Market sentiment improved significantly after Donald Trump indicated that the conflict with Iran could end soon. In a press conference, he said the war could conclude “very soon” and that the United States was making strong progress toward achieving its military objectives. 

He also mentioned that the US was “very far ahead” of the initial war timeline of four to five weeks. These remarks helped calm investor fears of a prolonged conflict and sparked a late recovery in global equities, which carried over into Asian and Indian markets on Tuesday.

Oil Prices Tumble

Crude oil prices were highly volatile during the previous trading session. Earlier, oil prices had surged above $119 per barrel, the highest level in more than three years, amid fears that the conflict could disrupt global energy supplies. 

However, prices later dropped sharply after Trump indicated that ships were moving through the Strait of Hormuz, easing concerns about supply disruptions. By extended trading, West Texas Intermediate crude futures had fallen to around $84.70 per barrel, providing relief to global equity markets.

Wall Street Recovers

US markets also staged a strong recovery after initial losses. The Dow Jones Industrial Average rose 0.5 percent (239 points), the S&P 500 gained 0.8 percent, and the Nasdaq Composite advanced 1.4 percent during Monday’s session. Meanwhile, the 10-year US Treasury yield edged up to 4.13 percent. The rebound on Wall Street helped improve risk sentiment across global markets, leading to gains in Asian indices and supporting the recovery in Indian equities.

Gold & Silver Prices Rise

Gold prices witnessed a strong start on Tuesday on the Multi-Commodity Exchange. April 2026 gold futures climbed by Rs. 1,492, or about 1.1 percent, to Rs. 1,61,791 per 10 grams, reflecting increased demand for safe-haven assets amid ongoing global uncertainties.

Silver prices also recorded a significant rally in early trade. May 2026 silver futures jumped Rs. 11,179, or nearly percent, to Rs. 2,78,339 per kg on the MCX, supported by strong buying interest in precious metals.

Rupee Opens Stronger Against US Dollar

The Indian rupee started the day on a positive note, opening at 91.92 against the US dollar, improving from the previous close of 92.32. However, analysts believe volatility linked to the continuing Middle East conflict may keep investors cautious in the near term.

Finance Minister on Inflation

Nirmala Sitharaman said that the recent surge in crude oil prices is unlikely to significantly accelerate inflation in India. Speaking in the Lok Sabha, she noted that the country’s retail inflation currently stands at 2.8 percent, which is close to the lower end of the 2–6 percent inflation target band set by the Monetary Policy Committee. 

Citing an MPC assessment from October, the minister explained that even if crude prices rise 10 percent above the baseline and the full cost is passed through, inflation would increase by only around 30 basis points (0.30 percentage points). She also highlighted that the Indian crude basket price had already risen about 16 percent to $80.2 per barrel between late February and March 2 and could approach the $100 per barrel mark. 

However, the government has ruled out an immediate hike in petrol and diesel prices as oil marketing companies had been reporting healthy profits before the West Asia conflict. According to the minister, both the government and oil companies are expected to absorb part of the cost pressures before passing them on to consumers, helping keep inflation under control in the near term.

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