Market Rally: Nifty Snaps 6-Week Losing Streak On Ceasefire Hopes And Cooling Oil Prices
Indian equity benchmarks Nifty 50 and BSE Sensex surged nearly 6% this week. They snapped their longest losing streak since early 2024. The rally, which was driven by a temporary ceasefire between the U.S. and Iran, saw crude oil prices retreat below $100 per barrel, easing inflation fears in Asia's third-largest economy. While foreign outflows slowed, aggressive domestic buying and a cooling volatility index showed return of risk appetite across financials and auto sectors.
Indian shares had their most powerful weekly recovery in over five years, thus ending a six-week downward spiral as a diplomatic breakthrough in West Asia tumbled oil prices and restored investor confidence.
The blue-chip NSE Nifty 50 index closed 1.16% higher on Friday at 24,050.60, while the S&P BSE Sensex climbed 1.2% to 77,550.25. For the week, both indices jumped approximately 6%, which is their sharpest percentage gain since February 2021.
Geopolitical Thaw Cools Crude
The primary reason was the announcement of a two-week suspension of military strikes between the United States and Iran. The move reopened the Strait of Hormuz, a critical route for global energy supplies. Hence, Brent crude plunged from $115 to the $95-$98 range.
The rally was broad-based, with risk-on sentiment lifting interest-rate-sensitive sectors.
- Banking & Auto: The Nifty Bank and Auto indices outperformed The banking gauge jumped over 8% during the week.
- Volatility: The India VIX, a measure of market fear, plummeted nearly 20% over the five sessions to 19.2. This suggests traders are unwinding defensive hedges.
- Laggards: Information Technology (IT) remained the sole outlier, underperforming as cautious margin commentary from heavyweights like TCS offset the broader optimism.
FII Bleed, Domestic Funds Hold Firm
While Foreign Institutional Investors (FIIs) have been heavy sellers throughout March, the pace of selling decelerated significantly this week. Exchange data showed that Domestic Institutional Investors (DIIs) provided a robust floor, thus absorbing the selling pressure as retail participation via mutual funds remained resilient.
The Indian rupee also caught a breather. It appreciated to 92.41 against the U.S. dollar, up from record lows touched just a week prior.
Published By : Shourya Jha
Published On: 11 April 2026 at 11:14 IST