INDIA STOCKS-Indian shares rise tracking global markets as Middle East tensions ease
By Bharath Rajeswaran and Vivek Kumar M
April 1 (Reuters) - Indian shares rose on Wednesday, recovering from their steepest drop in six years in March, as benchmarks tracked a global rally on signs of easing Middle East tensions.
The Nifty 50 .NSEI rose 2.42% to 22,870.25 and the BSE Sensex .BSESN added 2.52% to 73,766.35 as of 10:14 a.m. IST, their highest intraday jump in two months.
Other Asian markets .MIAPJ0000PUS surged 4.2%, while Brent crude LCOc1 hovered around $105 a barrel.
U.S. President Donald Trump said Washington could end its military attacks on Iran within two to three weeks, adding that Tehran would not need to strike a deal as a prerequisite for the conflict to wind down. MKTS/GLOB
"Momentum in markets is largely being driven by a decisive improvement in global risk sentiment, following encouraging signals around potential de-escalation in the ongoing West Asia conflict," said Hariprasad K, research analyst and founder of Livelong Wealth.
Signs of stability in the Middle East are supportive for India, given its reliance on energy imports. The volatility index .NIFVIX fell to 25.1 after hovering near its highest since June 2024 over the past two weeks.
"A decline toward the 22 zone would indicate unwinding of fear-driven positions and a normalisation in market conditions," Hariprasad said.
The Nifty and Sensex lost more than 11% each in March, their worst monthly performance in six years, as elevated crude prices linked to the Iran war weighed.
All 16 major sectors rose. Small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 advanced 3% each.
Heavyweights HDFC Bank HDBK.NS and Reliance Industries RELI.NS rose 2% each.
Larsen & Toubro LART.NS, with higher Middle East exposure, gained 4%.
Budget airline IndiGo INGL.NS climbed 5% after it appointed industry veteran Willie Walsh as its new chief executive.
IT company Coforge COFO.NS jumped 5% after getting Reserve Bank of India's nod for an overseas investment exceeding $1 billion to complete its $2.35 billion acquisition of U.S. AI firm Encora.
