Sensex, Nifty rebound sharply after 2-day fall
Indian stock markets staged a powerful comeback on April 1, with benchmark indices surging over 2.5% after two consecutive days of losses, driven by easing geopolitical tensions and renewed investor optimism.
The Sensex jumped 2,002 points, or 2.78%, to reach 73,949, while the Nifty climbed 606 points, or 2.71%, to trade near 22,937 in early session deals. Market breadth remained overwhelmingly positive, with a sharp majority of stocks advancing, News.Az reports, citing foreign media.
1. Hopes of Middle East de-escalation
Investor sentiment improved after signals that the ongoing US-Iran conflict could wind down sooner than expected. Comments from US President Donald Trump suggesting a possible end to military action within weeks, along with diplomatic signals from Iran, eased global concerns.
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Cooling tensions pushed Brent crude prices down to around $105 per barrel, helping reduce fears of rising inflation. Lower oil prices are particularly supportive for import-heavy economies like India.
2. Strong value buying after recent fall
After a steep sell-off in the previous sessions, investors stepped in to buy stocks at lower valuations. The rally was broad-based, with all major sectors opening in positive territory.
Mid-cap and small-cap indices outperformed, rising more than 3%, while all 50 stocks in the Nifty index traded in the green—highlighting strong market-wide participation.
3. Volatility drops sharply
The India VIX, often referred to as the market’s fear gauge, declined by 10% to around 25. The drop indicates improving investor confidence and reduced uncertainty.
Market experts note that the recent correction, particularly in banking stocks, has created opportunities for long-term investors. Some segments, including the Bank Nifty, had seen sharp declines due to non-fundamental factors and are now positioned for a potential rebound.
However, analysts also advise caution. A sustained bullish trend may depend on the Nifty decisively breaking above the 24,000 level, which would confirm stronger market sentiment.
By Aysel Mammadzada
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