The key equity benchmarks ended sharply higher on Wednesday, snapping a two-day losing streak, as risk sentiment improved after Donald Trump indicated that the U.S. could wind down its military operations involving Iran within two to three weeks.
Hopes of a potential de-escalation in Middle East tensions eased geopolitical concerns, boosting investor confidence and supporting broad-based buying across markets. Meanwhile, oil prices declined, with Brent crude slipping closer to the $100-per-barrel mark, further aiding sentiment. The Nifty settled above the 22,650 mark.
The barometer index, the S&P BSE Sensex surged 1,186.77 points or 1.65% to 73,134.32. The Nifty 50 index zoomed 348 points or 1.56% to 22,679.40. In two consecutive sessions, the Sensex declined 4.41% while the Nifty fell 4.18%.
The broader market outperformed the frontline indices. The BSE 150 MidCap Index added 2.25% and the BSE 250 SmallCap Index jumped 3.44%. The market breadth was strong.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 10.31% to 25.01.
Among the sectoral indices, the PSU Bank index (up 3.70%), the Nifty Media index (up 3.69%) and the Nifty Metal index (up 2.46%) outperformed the Nifty 50 index.
Meanwhile, the Nifty Pharma index (down 0.99%), the Nifty FMCG index (up 1.31%) and the Nifty Oil & Gas index (up 1.31%) underperformed the Nifty 50 index.
Economy:
India’s Goods and Services Tax (GST) collections rose above the Rs 2 lakh crore mark in March 2026, recording a robust year-end push in economic activity and compliance. Gross GST collections for March stood at Rs 2,00,064 crore, while net collections—after refunds, came in at Rs 1,77,990 crore. For the financial year FY26 (April–March), net GST collections for FY26 came in at Rs 19.34 lakh crore, up 7.1% compared to Rs 18.07 lakh crore in the previous fiscal year.
Numbers to Track:
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 94.70000 compared with its close of 94.8525 during the previous trading session.
MCX Gold futures for 5 June 2026 settlement rose 0.85% to Rs 152,038.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.42% to 99.54.
The United States 10-year bond yield fell 0.70% to 4.281.
In the commodities market, Brent crude for June 2026 settlement declined 30 cents or 0.29% to $103.67 a barrel.
Global Market:
The US Dow Jones index futures are currently up by 239 points, signaling a positive opening for US stocks today.
European stocks traded higher on Wednesday after President Donald Trump said that the U.S. would be exiting the war in Iran within two to three weeks.
Spain’s manufacturing PMI fell into contraction at 48.7 in March, while Germany’s PMI rose to 52.2, signaling strong growth; however, both faced supply disruptions, rising costs, and weaker confidence amid geopolitical tensions.
Asian markets ended higher after comments from Donald Trump raised hopes that the ongoing conflict involving Iran could ease in the coming weeks.
On Tuesday in the U.S., Trump said the country could scale back its involvement in the conflict within “two or three weeks,” adding that there may be little justification for continued engagement.
Investor sentiment was also supported by stronger-than-expected economic data from Japan. The Bank of Japan’s Tankan survey for the first quarter of 2026 showed business sentiment among large manufacturers rising to 17 from 15 in the previous quarter. The reading beat consensus expectations of 16 and marked the highest level since the fourth quarter of 2021.
Sentiment among large non-manufacturers came in at 36, unchanged from the prior quarter but above expectations of 33, indicating continued resilience in Japan’s service sector.
In China, manufacturing activity showed signs of moderation. The country’s purchasing managers’ index (PMI) fell to 50.8 in March, missing expectations of 51.6 and easing from February’s more than five-year high of 52.1. A reading above 50 still indicates expansion, though the slowdown suggests some loss of momentum.
Overnight on Wall Street, U.S. stocks rallied sharply on optimism that geopolitical tensions could de-escalate. The Dow Jones Industrial Average rose 1,125.37 points, or 2.49%, to close at 46,341.51. The S&P 500 gained 2.91% to end at 6,528.52, while the Nasdaq Composite advanced 3.83% to 21,590.63.
The gains followed reports suggesting that Iran may be open to ending hostilities if certain guarantees are met. Additional media reports indicated that the U.S. administration is willing to consider a resolution even if disruptions persist in the Strait of Hormuz, a critical global oil shipping route.
Easing concerns over the conflict and potential stabilization in energy supplies helped lift investor confidence, driving gains across global equity markets.