3 min readMumbaiApr 1, 2026 11:59 AM IST
The benchmark Indian stock indices jumped over 2% on Wednesday on hopes of the war in West Asia ending soon. The Indian indices had lost around 4% in the last couple of sessions, with the market being closed on Tuesday on the occasion of Mahavir Jayanti.
The National Stock Exchange’s Nifty 50 and the BSE’s Sensex were both up 2.5% at around 10 AM. All sectoral indices and broader market indices of the NSE also saw robust gains. The India VIX, which indicates the uncertainty in the market, fell over 9% but remains at elevated levels.
The rally comes after the Indian stock markets fell over 11% in March, the biggest monthly fall in six years. Foreign investors had offloaded a record $12.7 billion of Indian equities during the time, weighed down by diminishing returns from the Indian markets in the wake of the West Asia war and the sharp depreciation of the rupee against the dollar.
Markets around the world had also rallied on hopes of a rapid de-escalation in West Asia. The US markets had gained 3-4% overnight, their biggest single-day gain since May 2025. Asian markets also gained as much as 7% early on Wednesday.
The global rally came as President Donald Trump said the US could end its military attacks on Iran within 2-3 weeks, with a peace deal with Iran not being a prerequisite for stopping the attacks. While the statement boosted sentiment across global markets, it also underscored the US’s inconsistent communication in recent times, with Trump recently saying in an interview that the US would prefer to take over Iran’s oil supplies.
Iranian President Masoud Pezeshkian said the country has the “necessary will” to end the war with the US and Israel as long as certain conditions are met, the Iranian media reported. While comments from both parties have provided a glimmer of hope for markets and economies around the world, it remains to be seen whether there will be long-term peace in the region.
Strikes have continued across the region despite a temporary truce announced by the region. With Lebanon-based Hezbollah, which is a proxy for Iran, also joining the war, there have been strikes by both parties on each other. The airport in Kuwait was also hit due to Iranian attacks.
© The Indian Express Pvt Ltd
