Reliance helps Indian shares, but Iran war caution persists

Indian equity benchmarks rose marginally on Wednesday, helped by a boost from heavyweight Reliance Industries, while the Iran-war-led upswing in global borrowing costs continued to weigh on sentiment, pulling the rupee to another record low.

Concerns over a prolonged Middle East conflict have propelled a selloff in U.S. Treasuries, battering riskier assets across the globe.

Higher yields on U.S. bonds make equities less attractive for overseas investors, who have sold $23 billion of Indian shares so far in 2026, surpassing the record annual outflow seen last year.

On Wednesday, the Nifty 50 rose 0.17% to 23,659, while the BSE Sensex added 0.16% to 75,318.39. The indexes have fallen 6% and 7.3%, respectively, since the Iran war broke out at the end of February.

Eleven of the 16 major sectors rose. The broader small-caps ended flat and mid-caps gained 0.5%.

“Markets do not seem to be in a hurry,” said U.R. Bhat, co-founder of advisory services firm Alphaniti Fintech.

“Indian equity investors are more concerned about oil prices than anything else. If there is some pull back in oil prices, markets may rise in reaction to that.”

Shares of Reliance jumped 2.8%, recording their best day in over three weeks. The stock had slipped 9.6% in the last 10 sessions.

Aluminium manufacturer Hindalco rose 3.5% to be the biggest Nifty 50 gainer, after its U.S.-based subsidiary Novelis reported higher operating profit and said its New Jersey plant will restart operations in coming weeks.

Brent Crude prices dropped 1.9%, but remained elevated at $109 per barrel. India imports about 90% of its crude needs.

Two Chinese tankers laden with oil exited the Strait of Hormuz, according to shipping data.