Earlier in the session, markets saw a steep decline as oil prices surged over $4, following comments by Donald Trump indicating that the United States would continue strikes on Iran, including energy infrastructure, over the coming weeks.

At the open, the Sensex plunged over 1,400 points, while the Nifty dropped nearly 400 points, with all sectoral indices trading in the red. However, losses were gradually pared through the session as buying emerged at lower levels. The recovery comes a day after both benchmarks ended Wednesday’s session on a positive note, reflecting underlying resilience in market sentiment despite global uncertainties. The Nifty settled above the 22,700 level.

The barometer index, the S&P BSE Sensex advanced 185.23 points or 0.25% to 73,319.55. The Nifty 50 index rose 33.70 points or 0.15% to 22,713.10. In the two consecutive trading sessions, the Sensex jumped 1.90% while the Nifty added 1.70%.

In the broader market, the BSE 150 MidCap Index declined 0.24% and the BSE 250 SmallCap Index rose 0.05%. The market breadth was strong.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.03% to 25.52.

The stock market will remain closed tomorrow, 3 April 2026, on account of Good Friday.

Among the sectoral indices, the IT index (up 2.60%), the Nifty Realty index (up 1.07%) and the Nifty Metal index (up 0.39%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Consumer Durables index (down 0.93%), the Nifty Pharma index (down 0.92%) and the Nifty Oil & Gas index (down 0.79%) underperformed the Nifty 50 index.

Economy:

India’s manufacturing activity eased to 53.9 in March 2026, down from 56.9 in February, according to the latest Purchasing Managers’ Index (PMI) data released on April 2. The reading marks a 45-month low, with the last comparable level seen in September 2021 (53.7), indicating a moderation in manufacturing momentum.

The March print also reverses the uptrend seen earlier in 2026, when PMI rose from 55.0 in December to 55.4 in January and 56.9 in February.

While the index remained in the 55–59 range during 2024–2025, with peaks above 59, the latest decline suggests softening demand conditions and rising input cost pressures. The moderation comes amid heightened geopolitical tensions and elevated crude oil prices, which have begun to weigh on business sentiment and cost structures.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 1.98% to 7.099 compared with previous session close of 6.961.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 93.2150 compared with its close of 94.7000 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement fell 3.16% to Rs 148,850.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.49% to 100.14.

The United States 10-year bond yield added 1.02% to 4.364.

In the commodities market, Brent crude for June 2026 settlement zoomed $6.90 or 6.82% to $108.06 a barrel.

Global Market:

The US Dow Jones index futures are currently down by 533 points, signaling a weak opening for US stocks today.

European stocks traded lower on Thursday, as fears of escalation in the U.S.-Iran war gripped global markets once again.

Switzerland’s inflation rose 0.3% YoY in March 2026, below expectations but higher than February’s 0.1%, marking the highest level since March 2025. The rise was driven by housing and energy costs, while declines in food and transport limited gains. On a monthly basis, CPI increased 0.2%, easing from 0.6% in February, while core inflation remained unchanged at 0.4% YoY.

Asian markets ended lower, reversing earlier gains, as oil spiked following U.S. President Donald Trump’s national address on the Iran war.

During his speech, Trump reiterated that the U.S. objectives in Iran were almost met and said that “we have all the cards” in the conflict. He also said that Washington will hit Iran “very hard” over the next two to three weeks.

Early Wednesday stateside, Trump claimed that Iran’s “New Regime President” had asked the U.S. for a ceasefire, a claim that Tehran reportedly has denied.

Trump added that the U.S. will “consider” the offer only once the Strait of Hormuz was “open, free, and clear,” he said on social media platform.

Trump previously said he was willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remained closed, according to a media report.

Overnight on Wall Street, stocks rose on Wednesday, while oil prices declined to start the month, as hope grew that an end to the U.S.-Iran war was on the horizon.

The S&P 500 advanced 0.72% and closed at 6,575.32, and the Nasdaq Composite gained 1.16% and settled at 21,840.95. The Dow Jones Industrial Average added 224.23 points, or 0.48%, to end at 46,565.74.