Markets Snap Five-Day Losing Streak; Sensex Surges 468 pts, Nifty Up148 pts 

Mumbai, April 27: Indian equity benchmarks recovered sharply on Monday snapping a brutal five-session losing streak as weekend newsflow provided investors the trigger they needed to return to markets in force. Two distinct headlines broke over the weekend – Iran officially sent a new peace offer to the US through Pakistani mediators offering to reopen Strait of Hormuz and end the war, while India and New Zealand will sign Free Trade Agreement on Monday eliminating tariffs on 100% of India’s exports to NZ and substantially reducing/removing tariffs on 95% of imports from NZ.

BSE Sensex jumped 468.22 points or 0.61% to 77,132.43 and Nifty 50 advanced 148.75 points or 0.62% to 24,046.70 as on 9: 31 am after both benchmarks managed to move back above strong psychological support levels during today’s session — recovering sharply from Friday’s sharp selloff which saw Nifty drop below the 24,000 mark for the first time in several weeks. Buying was seen across metals, pharma, IT and infrastructure sectors in the early hours of Monday’s session although some individual sharp losers did manage to pull the indices back from their respective highs — notably Axis Bank and Shriram Finance on strong results reactions.

Gainers

Sun Pharma was the top gainer on Sensex which rose to a high of ₹1,709; LTP ₹1,677 (+3.49% from previous close of ₹1,620.40) after opening at a low of ₹1,621.90. Adani Ports jumped to ₹1,633.90; LTP ₹1,632.40 (+2.98% from previous close of ₹1,585.10). JSW Steel touched ₹1,295; LTP ₹1,292.70 (+2.95% from previous close of ₹1,255.70). Kotak Mahindra Bank hit ₹380 at its high and was trading at ₹378.20 (+1.98% from previous close of ₹370.85). Tata Steel also made the top five, rising to ₹214.20 at its session high and was trading at ₹213.91 (+1.83% from previous close of ₹210.07).

Laggards

Axis Bank was the biggest loser on Sensex which plunged to ₹1,299.90 at its session low and was trading at ₹1,309.30 (-4.14% from previous close of ₹1,365.90) with a high of ₹1,325 at open suggesting result induced selling sentiment overshadowed any broader market positivity right at the start of trade. Shriram Finance tumbled to ₹973.35 at its low and was trading at ₹976.50 (-3.44% from previous close of ₹1,011.30) as the stock struggled to recover after opening with a gap down. BEL declined to ₹441.40 at its low and was trading at ₹441.75 (-0.61% from previous close of ₹444.45). Bajaj Finance also declined to ₹916.15 at its session low with LTP ₹918.50 (-0.33% from previous close of ₹921.55). Reliance Industries fell to ₹1,311 at its session low and recovered to ₹1,326.20, down 0.12% from its previous close of ₹1,327.80.

Iran Offers Peace, India NZ Sign FTA

Iran sent a new proposal through Pakistani mediators on Sunday night — officially offering to reopen Strait of Hormuz and bring a peaceful end to the war. Tehran agreed to delink the nuclear issue from an immediate end to conflict, which many analysts saw as Tehran offering a pathway to diplomatic de-escalation. Markets likely responded positively to this news even as President Trump said he cancelled plans for his envoys Steve Witkoff and Jared Kushner to visit Islamabad for talks with Iran’s Foreign Minister Araqchi who flew into Pakistan on Sunday after shuttling from Oman and Russia and is now reportedly headed to Russia to meet President Putin.

India will sign Free Trade Agreement with New Zealand on Monday slashing tariffs between the two countries to record lows and giving another positive signal that India’s trade agenda remains on track despite heightened geopolitical risks. NZ removed tariffs on 100% of Indian exports while agreeing to reduce/remove tariffs on 95% of imports from India. Indian exporters of agriculture, leather, textiles and jewellery will benefit from greater market access while cheaper NZ imports ranging from dairy products to fish will also flow into India.

Asian Markets Gain

Asian markets traded firmly before markets opened on Dalal Street providing a favourable global lead. Japan’s Nikkei index jumped 1.45% to 60,584 which was its best daily performance in weeks. Shanghai Composite eked out a 0.22% gain while Hong Kong’s Hang Seng added 0.09% and Malaysia’s KLCI climbed 0.13%. Corporate profits at Chinese industrial firms grew 15.8% YoY in March accelerating from the 15.2% growth in January-February period — China’s fastest pace of profit growth in six months adding to recent data which suggest growth remains intact despite obvious bumps in China’s road to recovery.

Oil Prices

Oil prices continued to trade sharply higher into Monday’s session with Brent crude having gained 2.05% overnight to trade at $107.49 per barrel — its highest since April 7. WTI crude oil was last seen adding 1.88% to $96.17 a barrel. International strategist Tony Sycamore of IG said if Iran runs out of storage capacity for its oil it may have little option but to shut down its ageing oilfields. “If it comes to this it may shock the oil market into forcing America’s hand and agreeing some kind of diplomatic settlement.”

Friday’s Closing

Indian markets ended Friday on a deeply negative note with the BSE Sensex tumbling 999.79 points or 1.29% to 76,664.21 — registering its biggest single-day decline of the week – while Nifty 50 fell 275.10 points or 1.14% to close at 23,897.95 after cracking below strong psychological support of 24,000 in heavy selling amid strengthening crude prices and broad IT weakness. The sustained pressure on Indian markets came on the back of heightened geopolitical concerns surrounding Iran and a lack of fresh buying after markets witnessed back to back strong winning sessions earlier in the week.

Sources:

• https://www.bseindia.com/sensex/code/16
• https://www.nseindia.com/market-data/top-gainers-losers