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Indian markets garner gains on Wednesday amid hopes of US-Iran peace deal
May-06-2026

A last-hour buying helped Indian equity indices to end near day’s high points on Wednesday, with both Sensex and Nifty ending with gains of over a percent, on reports of US nearing to end war with Iran. After a positive start, markets traded near neutral lines but witnessed rally towards the end of the session.

Some of the important factors in trade:

India’s services sector sees robust expansion in April: Sentiments were upbeat, as India’s services sector witnessed robust expansion in the month of April 2026, after activity and new orders strengthened, even as new export orders eased. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 58.8 in April from 57.5 in March.

SCBs register robust credit growth of 15.9% in FY26 driven by strong economic activity: Adding some optimism, the Finance Ministry has said that Scheduled Commercial Banks (SCBs) in India have registered a significant 15.9 per cent credit growth in fiscal year 2025-26 (FY26), indicating strong economic activity and persistent demand for loans across several sectors.

Prolonged crisis in West Asia likely to slow India’s GDP growth to below 6.5%: Traders overlooked Confederation of Indian Industry (CII) President Rajiv Memani’s statement that a prolonged conflict in West Asia, accompanied by major disruptions in shipping and rising energy prices, poses a serious threat to India's economic growth momentum and likely to pull down the country's gross domestic product (GDP) growth to below 6.5%.

India, Jamaica agree to deepen trade ties and professional mobility: The street took a note of External Affairs Minister S Jaishankar’s statement that India and Jamaica have agreed to deepen trade relations and explore cooperation for recruitment and mobility of skilled professionals, such as teachers and healthcare workers.

Firm global cues: European markets were trading higher, while Asian markets ended higher on Wednesday, lifted by some strong earnings updates, and hopes of a U.S.-Iran peace deal following U.S. President Donald Trump's announcement of a temporary suspension of 'Project Freedom' in order to resume negotiations with Iran.

Finally, the BSE Sensex surged 940.73 points or 1.22% to 77,958.52 and the CNX Nifty was up by 298.15 points or 1.24% to 24,330.95.

The BSE Sensex touched high and low of 78,022.78 and 76,773.25, respectively. There were 21 stocks advancing against 9 stocks declining on the index.

The top gaining sectoral indices on the BSE were Telecom up by 2.94%, Realty up by 2.76%, Bankex up by 2.64%, Auto up by 2.32% and Healthcare up by 1.99%, while Power down by 0.47%, Utilities down by 0.19%, FMCG down by 0.14% and Energy down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 6.60%, Trent up by 3.91%, Asian Paints up by 3.56%, SBI up by 3.38% and HDFC Bank up by 3.11%. On the flip side, Reliance Industries down by 1.80%, Larsen & Toubro down by 1.18%, Power Grid down by 1.11%, NTPC down by 1.00% and HCL Tech. down by 0.97% were the top losers.

Meanwhile, Moody's Ratings in a report on emerging market has said that India has been the most resilient large emerging market economy since 2020, and its large forex reserves have played a key role in curbing currency fluctuations and sustaining investor confidence during global shocks. According to the report, India is well-positioned to handle future shocks on account of monetary policy frameworks are clear and predictable, inflation expectations are well anchored, and exchange rates can adjust when needed.

It stated ‘India's reliance on domestic funding is balanced by deep local markets and sizeable reserves... Nevertheless, India's relatively high debt burden and weak fiscal balance limit the amount of space available to respond to successive shocks.’ It noted India had made key policy choices that bolstered stability even before the recent period of stress.

Further it said that many major emerging-market sovereigns have absorbed a series of major global shocks over the past five years without sharp increase in risk premia or a loss of market access. This reflects sustained improvements in policy frameworks and the buildup of buffers, as well as particularly supportive external conditions.

CNX Nifty touched high and low of 24,356.50 and 23,997.90, respectively. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Interglobe Aviation up by 6.65%, Tata MotorsPassenger up by 5.29%, Shriram Finance up by 4.12%, Trent up by 3.73% and Asian Paints up by 3.66%. On the flip side, ONGC down by 3.16%, Reliance Industries down by 1.76%, Larsen & Toubro down by 1.13%, Power Grid down by 1.10% and NTPC down by 0.95% were the top losers.

European markets were trading higher; France’s CAC rose 265.99 points or 3.19% to 8,328.30, Germany’s DAX gained 662 points or 2.64% to 25,063.70 and UK’s FTSE 100 increased 258.8 points or 2.47% to 10,477.91.

Asian markets ended higher on Wednesday tracking overnight gains from Wall Street, where the S&P 500 and Nasdaq reached record highs, supported by solid earnings reports and lower oil prices. Investors' sentiments also boosted after US President Donald Trump announced that Washington would temporarily pause ‘Project Freedom’, its naval mission escorting ships through the Strait of Hormuz, citing ‘great progress’ in talks with Tehran. South Korea’s Kospi soared to a record high, breaking the 7,000 milestone for the first time in history after markets reopened following Tuesday’s holiday. The rally was led by Samsung Electronics, whose shares jumped above 14%, pushing the chip giant’s market capitalization past the $1 trillion mark as investors continued to pile into artificial intelligence-linked stocks. The Japanese stock market was closed for Constitution Day holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,160.17

48.02

1.17

Hang Seng

26,213.78

315.17

1.22

Jakarta Composite

7,092.47

35.36

0.50

KLSE Composite

1,756.87

9.44

0.54

Nikkei 225

--

--

--

Straits Times

4,927.38

6.77

0.14

KOSPI Composite

7,384.56

447.57

6.45

Taiwan Weighted

41,138.85

369.56

0.91
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