Markets: Amid war and hope, FY27 begins with Sensex, Nifty gaining over 1.5%

Virendra Pandit

New Delhi: Hours before US President Donald Trump’s scheduled address to his nation on the ongoing Iran war, the new financial year in India (2026-27) began on an optimistic note on Wednesday, with key benchmark indices, Sensex and Nifty50, gaining over 1.5 percent in tandem with a sharp rally in global markets on hopes of a potential de-escalation in the ongoing West Asia conflict.

A drop in crude oil prices also boosted the market sentiment. Brent crude, the global oil benchmark, declined 0.22 percent to USD 103.7 per barrel.

The two indices snapped a two-day declining streak and also pared most of their gains from the day’s high as the initial euphoria about a possible end to the US-Iran hostilities faded in the second half of the trading day.

The Nifty50 settled 1.56 percent higher (348 points) at 22,679.40, while the Sensex ended 1.65 percent higher (1,186.77 points), at 73,134.34.

Broader markets outperformed benchmark indices. The Nifty MidCap and the Nifty SmallCap indices ended 2.24 percent and 3.24 percent higher, respectively.

Sector-wise, the Nifty PSU Bank rose the most among peers. The Nifty Chemical and the Nifty Media also outperformed.

Bucking the trend, however, the Nifty Healthcare and the Nifty Pharma settled lower.

Sectorally, banking, media, chemicals and metals outperformed.

From the 30 Sensex firms, Trent, InterGlobe Aviation, Adani Ports, Bharat Electronics, State Bank of India and Eternal emerged as the major gainers.

NTPC, Sun Pharma, Power Grid, UltraTech Cement and Bharti Airtel were the laggards.

In the Nifty50 index, Trent, InterGlobe Aviation, and Adani Ports and Special Economic Zone were the top gainers.

In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended sharply higher. Kospi jumped 8.44 per cent, while Nikkei 225 index climbed 5.24 per cent.

Markets in Europe were trading in positive territory.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 11,163.06 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 14,894.72 crore.