Indian equities advanced on Tuesday, with the benchmark Sensex and Nifty logging their highest closing levels in six weeks. Gains were led by banking stocks amid strong earnings, alongside improved sentiment after the Reserve Bank of India (RBI) eased curbs on rupee derivative trades and optimism around a potential de-escalation in the Iran-US conflict.
The Sensex ended at 79,273, up 753 points, or 0.96 per cent, while the Nifty closed at 24,577, rising 212 points, or 0.9 per cent — both marking their strongest finish since March 6.
The total market capitalisation of BSE-listed firms increased by ₹3 trillion to ₹468.7 trillion.
Banking heavyweights drove a significant part of the rally. HDFC Bank gained 2.04 per cent and ICICI Bank rose 2.4 per cent following robust results, together accounting for more than half of the Sensex’s gains. The Nifty Bank index climbed 1.4 per cent. Sentiment was further supported by the RBI’s rollback of certain restrictions on rupee derivatives introduced earlier this month to curb currency volatility.
Market direction in the near term will hinge on developments in the Iran-US situation.
Investors are closely watching whether Iran joins talks ahead of the ceasefire deadline this week and whether oil flow through the Strait of Hormuz resumes. The disruption has pushed up crude prices, complicating India’s inflation and growth outlook given its reliance on energy imports. Brent crude was trading at $90.3 per barrel, up 0.9 per cent, and has risen 22 per cent since the conflict began.
The geopolitical tensions have also triggered renewed selling by foreign portfolio investors (FPIs), with year-to-date outflows already surpassing any previous full-year total. On Tuesday, FPIs were net sellers to the tune of ₹1,919 crore, while domestic institutional investors (DIIs) offloaded shares worth ₹2,221 crore. So far in 2026, FPI net outflows stand at ₹1.67 trillion.
“Indian equities are likely to maintain a gradual uptrend, supported by improving macroeconomic indicators, easing crude prices, and strong Q4 earnings momentum. However, with the ceasefire deadline approaching, the outcome of US-Iran talks remain a key monitorable. Any adverse development could pose downside risks. FII flow trends will also be critical, with recent selling indicating that a sustained reversal is yet to be established,” said Siddhartha Khemka, head of research (wealth management) at Motilal Oswal Financial Services.
Market breadth remained positive, with 2,487 stocks advancing against 1,801 declines. More than two-thirds of Sensex constituents ended higher.
Technically, analysts see near-term resistance for the Nifty in the 24,660-24,700 zone. “A sustained move above 24,700 could open the door for further upside towards 24,950, while the 24,460-24,430 band is expected to provide immediate support,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.