Indian shares hit one-month high on hopes of resumption in U.S.-Iran talks
- Nifty 50 rose 1.63% to 24,231.3 and the Sensex added 1.64% to 78,111.24
Indian shares rose to a one-month high on Wednesday, tracking Asian peers, as oil fell below $100 a barrel on rising expectations of renewed U.S.-Iran talks.
The Nifty 50 rose 1.63% to 24,231.3 and the Sensex added 1.64% to 78,111.24, their highest close since March 10, 2026.
Gains were broad-based, with all 16 major sectors higher. Small-caps and mid-caps rose 2.4% and 2.2%, respectively.
U.S. President Donald Trump said talks with Iran could resume in Pakistan over the next two days, sending Brent crude prices lower to $96 and bolstering expectations of a de-escalation in the war.
Other Asian markets gained 1.1%.
“If the conflict de-escalates over the next few weeks, FPI flows are likely to turn more constructive. Over a 3-6 month horizon, India could see steady reallocation back,” said Hari Shyamsunder, vice president and senior institutional portfolio manager – India equities at Templeton Global Investments.
Foreign investors have offloaded $19.2 billion so far in 2026, with record monthly outflows of $12.7 billion in March as investors grew anxious over the impact of Iran war.
However, Shyamsunder said any potential inflows could be gradual rather than aggressive as elevated oil prices and higher global risk premia could warrant visibility of stability in macros before allocation.
On Wednesday, heavyweight financials rose 1.5%, led by 1.9% jump in India’s largest private lender HDFC Bank.
IT stocks added 2.8%, while oil-to-telecom conglomerate Reliance gained 2.2%.
India’s largest airline IndiGo jumped 4.8% and was the top Nifty 50 gainer, while infrastructure major Larsen &Toubro, which has significant exposure to Middle East, gained 3.1%.
Hindalco climbed 3.4% and Nalco gained 1.4% on analysts’ optimism over higher aluminium prices.
Bucking the trend, telecom infrastructure provider Indus Towers fell 4.2% after Jefferies downgraded it to “underperform” from “buy” due to risks emerging from bunched up site renewal risks and elevated capex levels.
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