Stay updated with the latest - Click here to follow us on Instagram
© The Indian Express Pvt Ltd
Journalism of Courage
Premium
Markets rebound after war rout: Sensex tops 80,000, Nifty gains 1.2%
Media reports suggesting attempts to resolve the conflict may have also supported market sentiment.
A plane takes off from the Beirut–Rafic Hariri International Airport as smoke from an earlier Israeli airstrike still rises in Dahiyeh, Beirut's southern suburbs, Lebanon, Thursday, March 5, 2026.(AP Photo)
Domestic markets rebounded on Thursday, snapping a three-session losing streak triggered by the escalating conflict in West Asia. Benchmark indices rose over 1%, offering investors some relief after the markets had fallen nearly 4% in the previous three sessions amid geopolitical tensions and a sharp spike in crude oil prices.
The NSE benchmark Nifty 50 index gained 1.5% intraday on Thursday before eventually settling 285.40 points or 1.2% higher at 24,765.90 points. The BSE Sensex index ended 80,015.90 points, up 899.71 points or 1.1%. The rupee also appreciated to 91.50 against the dollar.
The rebound was largely driven by improving sentiment in global equities, many of which had come under heavy selling pressure earlier in the week as fears of a wider regional conflict rattled investors. With overseas markets stabilising and bargain-hunting emerging in battered stocks, domestic equities clawed back a part of their recent losses, though caution continues to dominate the sentiment.
Media reports suggesting attempts to resolve the conflict may have also supported market sentiment. A New York Times report on Wednesday said Iranian intelligence operatives had contacted the US’ CIA a day after the war began, noting that US officials remain skeptical about both Iran’s and the Trump administration’s willingness to de-escalate. Many market participants view Thursday’s relief rally as temporary, as sustained elevated crude prices could weigh heavily on markets.
Broader markets also ended in green on Thursday. Except IT, all other sectoral indices on the NSE closed higher. Consumer durables and metals were the top performers, while automobiles, real estate, pharmaceuticals, oil and gas and financial services also posted strong gains. Mid-cap and small-cap indices rose by around 1.4%.
Stocks that had been battered since the start of the war — L&T, Reliance Industries Ltd (RIL), Adani Ports, and InterGlobe Aviation — were among the top gainers on the Nifty 50. L&T, which fell by over 10% in the last three sessions, recovered by 3.88%. RIL recovered by 3.29%.
The India VIX fell nearly 16% to below 18, indicating that a significant portion of the geopolitical risk had been priced in during the sell-off, said Hitesh Tailor, a technical analyst at Choice Broking. The volatility indicator had surged over 55% since the start of the war over the weekend.
Story continues below this ad
The relief rally was also seen across other major global markets. The US markets gained up to 1% overnight, led by technology stocks. The South Korean market jumped nearly 10% earlier today, whereas markets in Japan, Hong Kong, and China gained as well.
Crude oil prices continued to rise on Thursday, though reports suggested India would import Russian crude on an interim basis in order to ease the supply disruptions. Crude is among the most important commodities used across industries, either as a raw material or fuel. A Bloomberg report said shipment tracking data suggests 2 tankers carrying crude to East Asia have already been redirected to India.
Advertisement
Loading Recommendations...
Live Blog