staged a sharp recovery on Wednesday, with the closing at 24,331, up 298 points or 1.24 per cent, after clawing back from an intraday low of 23,998.
The ended at 77,958, gaining 941 points or 1.22 per cent. The turnaround was driven primarily by a near 6 per cent slump in to the $103–104 per barrel range, following reports that the United States and Iran are close to agreeing on a one-page memorandum to end hostilities in West Asia.
The session was anything but straightforward. Markets opened with a gap-up but quickly surrendered gains under selling pressure in the first half, with the Nifty drifting down to the 24,000 zone.
The index spent the morning session pinned in a narrow band, with heavy options open interest at the 24,100 Call and 24,000 Put levels keeping participants cautious.
The recovery, when it came, was swift — the Nifty gained over 275 points from intraday lows post 1 PM, closing well above the 24,200 resistance mark that had held for several sessions.
Ajit Mishra, SVP Research at Religare Broking, noted that the rebound was broad-based, with banking, financials, and realty leading. “…Indications favour further upside towards 24,550 and then 24,750 levels. On the downside, support remains intact at 24,000–23,800…,” he said.
The broader markets outperformed the benchmarks. The Midcap 100 gained 1.7 per cent and the Smallcap 100 rose 1.9 per cent. The Midcap Index registered a fresh breakout above the 60,950–61,000 resistance zone, while the Smallcap Index exited a five-session consolidation range. Market breadth was firmly in favour of buyers, with 407 of the Nifty 500 stocks ending in the green.
Sectorally, Realty and Metals led gains, with Pharma adding 2.3 per cent and Chemicals rising 2.4 per cent. PSU Banks and Financial Services were among the top Nifty sectoral gainers.
IndiGo was the top gainer on the Nifty, benefiting directly from the fall in aviation turbine fuel costs. ONGC and Reliance were among the notable laggards, weighed down by the crude price decline impacting upstream earnings.
On the policy front, the Union Cabinet approved ECLGS 5.0, a ₹18,100 crore government-backed credit guarantee scheme designed to facilitate nearly ₹2.55 lakh crore in incremental credit for businesses facing liquidity stress linked to the West Asia conflict, including a dedicated ₹5,000 crore window for the aviation sector.
, recovering sharply from above 95.00 to around 94.40–94.60 against the dollar, a gain of approximately 0.75 per cent, as crude concerns eased and risk appetite improved globally.
Gold rallied sharply on the geopolitical developments, with MCX gold surging nearly ₹3,000 to ₹1,52,800, up around 2 per cent, while COMEX gold gained about 3.45 per cent to near $4,710. Rupee appreciation, however, capped some of the domestic price upside.
India VIX, the fear gauge, fell sharply — by between 5.8 per cent and 6.87 per cent depending on the measure used — to close around 16.67–16.88, signalling a meaningful reduction in near-term anxiety.
Technically, the Nifty’s recovery aligned with its 20-day exponential moving average around 24,028, reinforcing that level as a key near-term support. Siddhartha Khemka, Head of Research at Motilal Oswal, observed that if diplomatic momentum sustains, “…the prolonged consolidation phase in the Nifty could begin transitioning into a more durable market re-rating…,” with domestic macro support and a steady Q4FY26 earnings season adding to the case.
Looking ahead, market participants will be closely watching for any official confirmation — or breakdown — in the US-Iran talks, as that remains the single most important variable for crude prices and, by extension, for the direction of Indian equities, the rupee, and inflation expectations in the sessions ahead.