India Inc Regains Ground; Stocks Rally on Hopes of Peace in Middle East

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 rose 1.51% to 22,667.01 and the BSE Sensex added 1.68% to 73,153.83 as of 10:14 a.m. IST, their highest intraday jump in two months.

Other Asian markets surged 4.6% and Europe's STOXX 600 gained 2.3%, while Brent crude fell to $101 a barrel.

The US 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.

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Signs of stability in the Middle East are supportive for India, given its reliance on energy imports.

"Markets are running up on optimism that the war that jolted global equities and disrupted energy supplies may be nearing a conclusion," said Devarsh Vakil, head of prime research at HDFC Securities.

Trump will provide an update on Iran in an address on Thursday morning IST.

"The address could shape the near-term market trajectory as it will outline the U.S. government's next step in its Iran strategy," Vakil said.

The Nifty and Sensex lost more than 11% each in March, their worst monthly performance in six years, on elevated crude prices due to the Iran war.

Fourteen of the 16 major sectors rose. Small-caps and mid-caps advanced 3.5% and 2.5%, respectively.

Heavyweights HDFC Bank and Reliance Industries rose 2% and 1.6%.

Larsen & Toubro, with higher Middle East exposure, gained 3.4%.

Budget airline IndiGo climbed 6.7% after it appointed industry veteran Willie Walsh as its new chief executive.

IT company Coforge 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 the US AI firm Encora.