Indian benchmark indices surged about 6% this week—their strongest performance in over five years—driven by sharply improving global cues after a ceasefire between the US and Iran eased geopolitical tensions, stabilised crude oil prices, and triggered a risk-on rally across global equities.
The Sensex recorded its sharpest weekly gain since the week ended 7 February 2021, when the markets had surged over 9% in a rally as covid-19 fears subsided. On Friday, the Nifty 50 rose 1.16% to close at 24,050.60, while the Sensex gained 1.2% to end at 77,550.25.
At the same time, volatility cooled significantly. The India VIX, which measures expected market volatility, dropped from 25.5 to 18.85 during the week—falling below the key 20 mark.
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“Nifty VIX easing below 20 is a sign that the sway of global uncertainties over Indian markets is reducing,” said Anand James, chief market strategist at Geojit Investments. “Moreover, the earnings season has also provided stock-specific triggers, replacing broad-based panic or relief-driven moves.”
Technical indicators suggest the rally may have further room to run. According to Mehul Kothari, DVP, technical research at Anand Rathi Share & Stock Brokers, the 5.9% surge in the Nifty 50 appears to be more than just a short-term rebound. The index has broken above the crucial 23,100–23,400 resistance zone and is now holding near the 24,000 level.
Kothari expects the index to test the 24,500–24,800 range in the near term, although intermittent corrections towards 23,600–23,200 may occur. Such dips, he said, should be seen as buying opportunities given improving momentum and market structure.
The rally was led by rate-sensitive sectors, signalling improving domestic sentiment. The BSE Realty index rose over 12%, followed by auto stocks with gains of more than 10%. Consumer durables and the Bankex index also advanced around 9%.
On the lower side, IT stocks lagged, rising only 2% due to continued concerns over weak global demand, especially in the US and Europe.
“IT contributes about 9.4% to the Nifty, but metals and autos together contribute nearly 11% and are showing signs of an uptrend. Financials, which account for around 35% of the index, are also likely to remain strong,” said James.
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Kothari added that leadership from domestic cyclicals such as realty, auto and financials is likely to continue in the near term, supported by strong domestic demand.
Despite the strong rally, Indian markets underperformed several Asian peers. The Nifty 50 rose about 5.9% during the week, compared with 10% for South Korea’s KRX 100 index, and KOSPI’s 8.9%. Taiwan’s TAIEX gained 8.7%, while Japan’s Nikkei 225 rose 7.1%. Indonesia’s Jakarta Composite index also edged past India with a 6.1% gain.
Even as stock-specific triggers from earnings begin to take centre stage, the broader macro backdrop remains supportive, with easing geopolitical tensions underpinning sentiment.
Peace talks between the US and Iran are scheduled to take place in Islamabad on Saturday, signalling a possible diplomatic path forward after a ceasefire was announced on 8 April.
While sporadic skirmishes persist, particularly in Israel’s attacks on Lebanon, crude oil prices have moderated, offering relief to global and domestic markets. India’s crude basket fell to $115.52 per barrel on Thursday from $120.28 a day earlier.
Global benchmarks also reflected this cooling trend. Brent crude hovered at $95.82 per barrel in evening trade on Friday, marginally lower from its previous close, while West Texas Intermediate edged up 0.6% to $97.93 a barrel.
With global concerns easing, investor attention is now shifting to the ongoing earnings season, which kicked off with Tata Consultancy Services (TCS). TCS reported a modest sequential improvement in its quarterly performance. However, it still ended FY26 with its first full-year revenue decline in dollar terms since listing, underscoring persistent pressure on the IT sector amid weak global demand and delayed client spending.
The spotlight will now turn to upcoming results from companies such as Wipro, ICICI Prudential AMC, and HDFC AMC, which are expected to offer broader cues on the earnings trajectory.
“The focus will now shift to upcoming corporate earnings, which will provide further clarity on demand trends and overall corporate performance, and are likely to drive stock-specific movements in the coming weeks,” said James.
Rituraj Baruah contributed to this story.
Mayur Bhalerao is a markets reporter at Mint with around 12 years of experience across finance and media. His coverage focuses on Indian equities, IPOs and broader market trends, tracking developments across large-cap, mid-cap and small-cap stocks as well as shifts in investor behaviour among retail investors, mutual funds and foreign portfolio investors.<br><br>Mayur’s reporting emphasises data-driven analysis of market movements, valuations and sectoral trends. He uses shareholding disclosures, financial filings and market data to explain developments on Dalal Street and examine how global events and domestic policy changes—including geopolitical tensions, crude oil prices and regulatory decisions—shape Indian equities and investor sentiment.<br><br>He regularly uses financial databases such as the Bloomberg terminal and Capitaline to produce data-intensive stories, analysing company disclosures, ownership patterns and sectoral trends across both Indian and global markets. He also supports colleagues in the newsroom by providing database-driven insights and market data analysis that help strengthen broader market coverage.<br><br>Before joining Mint, Mayur worked at Informist Media Pvt Ltd., a leading financial newswire, where he developed his expertise in financial journalism in a specialised markets newsroom.