The key equity indices ended with strong gains on Tuesday, supported by positive global cues amid signs of easing geopolitical tensions. Investor sentiment improved following reports of potential progress in negotiations between the U.S. and Iran.
Market confidence was further boosted after U.S. President Donald Trump announced a temporary pause on potential strikes targeting Iran’s energy infrastructure, lifting overall risk appetite. The Nifty ended above the 22,900 level.
The barometer index, the S&P BSE Sensex zoomed 1,372.06 points or 1.89% to 74,068.45. The Nifty 50 index soared 399.75 points or 1.78% to 22,912.40.
The broader market outperformed the frontline indices. The BSE 150 MidCap Index jumped 2.48% and the BSE 250 SmallCap Index gained 2.24%. The market breadth was strong.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 7.44% to 24.74.
Among the sectoral indices, the Media index (up 3.45%), the Nifty Private Bank index (up 2.49%) and the Nifty Auto index (up 2.43%) outperformed the Nifty 50 index.
Meanwhile, the Nifty Pharma index (up 0.85%), the Nifty Healthcare index (up 1.07%) and the Nifty Oil & Gas index (up 1.31%) underperformed the Nifty 50 index.
Economy:
India’s private sector growth weakened in March, marking the slowest expansion since October 2022. The slowdown was mainly due to softer domestic demand, even as international orders surged to a record high. Businesses reported that geopolitical tensions in the Middle East, volatile market conditions, and rising inflation affected overall performance.
The HSBC Flash India Composite Output Index dropped from 58.9 in February to 56.5 in March, indicating slower growth across manufacturing and services. Manufacturing saw the sharpest decline, with output growth hitting its lowest level since August 2021. Companies cited global uncertainty and rising costs as key challenges. The services sector also expanded at a slower pace, with disruptions to international travel affecting activity.
US-Iran Warfare
Global investors remain cautious as the Middle East conflict enters its fourth week. Despite both sides signaling de-escalation, concerns persist about energy security and global economic growth.
Iranian Foreign Minister Abbas Aragchi reportedly told Trump's special envoy Steve Witkoff that Supreme Leader Mojtaba Khamenei has given him approval to "close the issue quickly" if Tehran's conditions are met.
Further, Donald Trump has said that based on the “tenor and tone” of the ongoing discussions, he has instructed the US Department of War to postpone any planned military strikes on Iranian power plants and energy infrastructure for five days.
According to the chief of the International Energy Agency (IEA), nearly 40 energy assets ‘severely damaged' in conflict; warns of ‘worst’ crisis.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.07% to 6.834, compared with the previous session close of 6.839.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 93.7500 compared with its close of 93.5300 during the previous trading session.
MCX Gold futures for the April 2, 2026 settlement jumped 0.67% to Rs 140,187.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.21% to 99.34.
The United States 10-year bond yield advanced 0.95% to 4.373.
In the commodities market, Brent crude for May 2026 settlement jumped 92 cents or 0.92% to $100.86 a barrel.
Global Markets:
European shares traded lower on Tuesday as the S&P Global Eurozone Composite PMI declined to 50.5 in March 2026, down from 51.9 in February.
Asian markets ended higher amid signs of de-escalation in the Middle East conflict.
Meanwhile, Japan’s Nikkei 225 and the Topix indices clocked strong gains after the country's headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices and fuel subsidies.
The consumer price index fell to 1.3% last month, according to data released by Japan’s Statistics Bureau Tuesday, marking the lowest since March 2022 and below the central bank’s 2% target, down from 1.5% in January.
Overnight in the U.S., stocks rallied after President Donald Trump said the U.S. and Iran have held talks. The Dow Jones Industrial Average jumped 631 points, or 1.38%, to close at 46,208.47. The S&P 500 rose 1.15% and ended at 6,581.00, while the Nasdaq Composite gained 1.38% and settled at 21,946.76.