Despite no clarity on Iran war, Indian stock market rebounds

PrashantNews

After days of negativity, the Indian stock market surged on Wednesday despite no clarity coming on the Iran war on the day 1 of the new financial year 2026-27.

There was no big fluctuation in the prices of brent crude and rupee against dollar either during the day.

Sensex zoomed as much as 2,000 points and Nifty crossed 22,900. However, the benchmark indices then erased some gains. Sensex closed 1,187 points higher at 73,134, while Nifty rose 348 points to end the session at 22,679.

The sharp rally in stock markets added around Rs 10 lakh crore to the total market capitalisation of all companies listed on the hope of de-escalation of the Iran war.

Indian equity markets opened FY27 on a strong note, driven by improving risk appetite following US President Donald Trump’s remarks hinting at a potential resolution to the West Asia conflict.

The broad-based buying lifted benchmark indices, with mid- and small-cap stocks outperforming large caps, aided further by a stabilising rupee and softening crude oil prices. Sectoral rotation from defensives toward cyclicals was evident, with banking, chemicals, metals, and realty emerging as the key outperformers of the session.

Nevertheless, elevated bond yields and intraday volatility capped gains, keeping the overall advance measured rather than emphatic. Despite the constructive tone, markets may remain sensitive to sudden reversals in the evolving geopolitical landscape going forward.

Trent closed at 3,516.75 with a grain of 222.10 (6.74%), INDIGO at 4,180.90 gain of 237.15 (6.01 %) and Adaniports at 1,385.20 up by 71.80 (5.47%).

Bombay Dyeing and Jindal World were among the midcaps which gained more than 10 percent.