Benchmarks Extend Rally as Ceasefire Hopes Pull Oil Lower and Lift Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

March 25, 2026 at 11:40 AM IST

Indian equity benchmarks gained for a second consecutive session on Wednesday as prospects of a West Asia ceasefire pulled oil prices lower and eased concerns over growth in the world's third-largest crude importer. The Nifty50 rose 1.72% or 392.70 points to 23,306.45, while the BSE Sensex added 1.63% or 1,205 points to 75,273.45, taking the two-session recovery to 3.5%.

Global markets reacted positively to US President Trump's comments on Tuesday that Washington was making progress toward ending the war, though Iran's military stated no talks had taken place, keeping the situation fluid.

Broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty SmallCap 100 gaining 2.30% and 2.59% respectively, as risk appetite returned broadly across market segments. Nifty Consumer Durables emerged as the top-performing sectoral index, with Nifty Realty and Nifty PSU Bank also outperforming most peers, while Nifty IT underperformed amid persistent structural concerns. The two-day rebound has offered meaningful relief after weeks of relentless selling, though analysts cautioned that the sustainability of the recovery hinged entirely on further concrete progress toward a ceasefire in the West Asia conflict and a sustained retreat in brent crude oil prices.

Top Movers of the Day

HDFC Bank extended its recovery into a second consecutive session, rising over 3% to an intraday high of ₹791.35 on the NSE, following a 2.8% gain to ₹764.90 on Tuesday.

Larsen & Toubro rose nearly 4% to an intraday high of ₹3,652.90 on the NSE after securing a significant order for its water and effluent treatment business from the Guwahati Metropolitan Drinking Water & Sewage Board for a water management project in Assam.

ICICI Bank traded lower by around 1–2% intraday, keeping pressure on the financial sector.

Trent surged around 5% to an intraday high of ₹3,532 on the NSE, driven by broad-based buying as crude oil prices fell sharply amid rising hopes of de-escalation in the West Asia conflict.

MCX surged 3.25% to an intraday high of ₹2,497.70 after HDFC Securities reiterated a buy rating on the stock with an increased target price, adding to the broader market rally.

Sugar stocks rallied sharply, with Triveni Engineering & Industries surging 8% to ₹401 and Balrampur Chini Mills soaring 7% to ₹512.10 on the BSE in intraday trade.

Manappuram Finance jumped 6.4% to an intraday high of ₹269 on the BSE after Bain Capital launched an open offer to acquire up to 26% stake from public shareholders at ₹236 per share plus ₹12.29 per share as interest.

Aurobindo Pharma hit a fresh 52-week high of ₹1,321.30, gaining 3% on the BSE and surpassing its previous peak of ₹1,319.60 touched on 12 March 2026.

RVNL andIrcon International traded with healthy gains amid reports of a potential merger between the two government-owned railway companies.

Futures & Options
Nifty March 2026 futures closed at 23,310.10, a marginal premium of 3.65 points over the spot Nifty, which soared 394.05 points or 1.72% to settle at 23,306.45 in the cash market. The near-flat premium to spot suggested that while sentiment improved meaningfully on the day, traders remained cautious about building aggressive long positions ahead of clearer confirmation of a West Asia ceasefire. India VIX shed a modest 0.40% to 24.64, a relatively muted decline given the scale of the day's equity rally, indicating that near-term volatility expectations remain stubbornly elevated and that markets are yet to fully price in a resolution to the geopolitical crisis. HDFC Bank, TCS and Infosys were the most actively traded stock futures contracts in the F&O segment on the NSE. The March 2026 derivative contracts are set to expire on 30 March 2026.

Bonds
The Indian government bond yields edged marginally higher on Wednesday, with the benchmark 6.48% 2035 bond yield closing at 6.8750% from 6.8681% at Tuesday's close, as crude oil prices swung between sharp declines and recovery through the session, ultimately settling near the $100 per barrel mark after an earlier drop of more than 7% on reports of a US-Iran ceasefire plan. Sentiment remained cautious despite the diplomatic progress, with US President Trump confirming that Washington had sent Iran a 15-point settlement proposal and that negotiations were advancing, as bond markets awaited more concrete signs of a resolution before pricing in a sustained easing of the energy-driven inflation and fiscal pressures that have weighed heavily on domestic debt markets in recent weeks.

Forex
The Indian rupee edged marginally lower on Wednesday, closing down 0.1% at 93.9775 per dollar and hovering near its record low of 93.98 throughout the session, as dollar demand from maturing non-deliverable forwards and continued foreign portfolio outflows offset the positive sentiment from a fall in Brent crude below $100 per barrel. Interbank traders and importers stepping in to buy dollars prevented the rupee from benefiting from the equity market's relief rally, with the Reserve Bank of India intervening to limit further depreciation and keep the currency from breaching fresh record lows.

Crypto
Crypto markets showed resilience on Wednesday as the West Asia conflict showed signs of stabilising, with a 6% drop in oil prices and reports of a Trump-backed 15-point US-Iran ceasefire plan lifting overall market sentiment. Bitcoin held firmly above the $70,000-mark, trading at $70,610, while Ethereum edged up to $2,154.25. Top tokens broadly followed Bitcoin's lead, with Hyperliquid emerging as the biggest gainer of the session across the major crypto assets.

US Stock Futures
US stock futures climbed on Wednesday after President Trump announced that the US had sent a 15-point peace plan to Iran, sparking a sharp fall in oil prices and lifting risk sentiment across global markets. E-mini S&P 500 contracts rose approximately 1% and Nasdaq 100 futures advanced just over 1%, as easing geopolitical worry offset stubborn inflation risks. More specifically, Nasdaq 100 futures gained 1.05%, S&P 500 futures rose 0.89% and Dow Jones Industrial Average futures added 0.93%, pointing to a broad-based recovery on Wall Street as hopes of West Asia de-escalation gathered momentum.

US Treasury Notes
Yields on US Treasury retreated from recent eight-month highs on Wednesday, with the benchmark 10-year note yield pulling back to approximately 4.34% from a peak of 4.40% hit the previous session, as reports of a US 15-point ceasefire proposal to Iran sparked a sharp fall in energy costs and allowed for a modest bond rally. Despite the relief, yields remained broadly elevated, reflecting market concerns that interest rates may stay higher for longer amid persistent inflationary pressures. Federal Reserve officials continued to caution that a patient approach to rate cuts was warranted, even as US manufacturing and services activity hovered just above the contraction threshold.

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