In the barometer index, the S&P BSE Sensex jumped 938.93 points or 1.26% to 75,502.85. The Nifty 50 index rose 257.70 points or 1.11% to 23,408.80. In the past three consecutive trading sessions, the Sensex dropped 4.65% while the Nifty fell 4.57%.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.42% and the BSE 250 SmallCap Index shed 0.47%. The market breadth was weak.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 4.60% to 21.60.

Among the sectoral indices, the Nifty Auto index (up 1.67%), the Nifty Financial services index (up 1.36%) and the Nifty Private Bank index (up 1.24%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Oil & Gas index (down 1.58%), Nifty Realty index (down 1.57%) and the Nifty Healthcare index (down 1.37%) the underperformed the Nifty 50 index.

Economy:

India's merchandise trade deficit narrowed to $27.1 billion in February from $34.68 billion in January.

Goods exports edged up to $36.61 billion in February from $36.56 billion in January, while imports declined to $63.71 billion from $71.24 billion during the same period.

However, on a year-on-year basis, the merchandise trade deficit widened sharply from $14.42 billion in February last year.

India’s wholesale price index (WPI) inflation accelerated to 2.13% in February 2026 compared with 1.81% in January 2026, marking an 11-month high. Food inflation edged higher to 1.85% during the month from 1.41% in January. Meanwhile, inflation in the fuel and power segment turned positive at 1.17% in February against a contraction of 1.62% in the previous month.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.34% to 6.702 compared with the previous session close of 6.679.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 92.3750 compared with its close of 92.3000 during the previous trading session.

MCX Gold futures for the 2 April 2026 settlement fell 1.93% to Rs 155,400.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.28% to 99.82.

The United States 10-year bond yield declined 0.68% to 4.256.

In the commodities market, Brent crude for May 2026 settlement rose 73 cents or 0.71% to $103.87 a barrel.

Global Markets:

The US Dow Jones index futures are currently up by 229 points, signaling a positive opening for US stocks today.

European shares declined on Monday as the ongoing unrest in the Middle East and elevated global oil prices continue to unsettle investors.

Asian markets ended mixed as investors assessed elevated oil prices and the latest developments in the escalating U.S.-Iran conflict.

U.S. crude prices climbed over $100 per barrel as the Trump administration weighed military strikes on Tehran’s Kharg Island, a strategically vital hub often referred to as Iran’s “oil lifeline.”

President Donald Trump on Friday reportedly ordered strikes against Iranian military assets on Kharg Island and warned of further attacks on crude facilities located there. Mike Waltz, the U.S. ambassador to the United Nations, repeated the warning Sunday, as per media reports.

According to a global research house, a surge in energy prices stemming from the war in Iran could shave about 0.3% off global GDP over the next year, while pushing headline inflation higher by roughly 0.5% to 0.6%.

Higher natural gas prices are expected to add further inflationary pressure and growth headwinds, particularly in Europe and Asia, with risks skewed toward larger impacts if the Strait of Hormuz remains closed, the research firm has reportedly said.

On the data front, retail sales in China for the first two months of the year rose 2.8% from a year earlier, beating the widely reported forecast for 2.5% growth, but a notable slowdown from the 4% growth in the January-February period in 2025.

Industrial output climbed 6.3%, also exceeding widely reported expectations for a 5% jump. Industrial production has been a relative bright spot in the world’s second-largest economy, thanks to resilient external demand, particularly from European and Southeast Asian nations.

On Wall Street, US stocks closed red on Friday, despite showing some recovery and optimism after the opening bell.

The S&P 500 shed 0.61%, putting it 5% below its recent high and closing at 6,632.19. The Nasdaq Composite declined 0.93% to end at 22,105.36. The Dow Jones Industrial Average shed 119.38 points, or 0.26%, and settled at 46,558.47.

Rising oil prices tied to geopolitical tensions have weighed on market sentiment, keeping investors cautious.

Meanwhile, a federal judge on Friday rejected the Justice Department’s attempt to subpoena Federal Reserve Chair Jerome Powell, delivering a significant legal victory for the central bank.

US District Judge James Boasberg ruled that the subpoenas issued by US Attorney Jeanine Pirro were improper and appeared to be politically motivated.

Mortgage rates climbed to their highest level since September on Friday as bond yields rose amid escalating tensions related to the war in Iran.

According to media reports, the average rate on a 30-year fixed mortgage reached 6.41%. Mortgage rates tend to track movements in the 10-year US Treasury yield, which moved higher again on Friday, contributing to the latest increase in borrowing costs.