Equities Rebound as Iran Proposal Eases Geopolitical Concerns

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

April 27, 2026 at 11:34 AM IST

Indian equities snapped a three-session losing streak on Monday, supported by a rebound in IT stocks, strong gains in pharma counters and improving sentiment around developments in West Asia. The Nifty50 rose 0.81% to 24,092.70, while the BSE Sensex gained 0.83% to 77,303.63, with both indices ending near the day’s highs.

Investor sentiment improved after reports suggested that Iran had proposed reopening the Strait of Hormuz and ending the conflict with the US, while deferring nuclear negotiations to a later stage. The development eased concerns around global energy supply disruptions and supported risk appetite across markets.

The rally was broad-based, with all 16 major sectors ending higher. Broader markets outperformed benchmark indices, as the Nifty MidCap and Nifty SmallCap indices advanced 1.47% and 1.90%, respectively. Pharma, realty and IT stocks led the gains, while private banks and financial services underperformed amid selective profit booking.

Among sectoral outperformers, Sun Pharmaceutical Industries remained in focus after announcing its acquisition of US-based Organon, which boosted sentiment in pharma stocks. IT counters also recovered strongly after recent heavy selling pressure. Overall market breadth stayed positive, with buying seen across FMCG, metals and midcaps, indicating a return of risk appetite as geopolitical tensions showed tentative signs of easing.

Top Movers of the Day

Axis Bank declined around 2% to ₹1,325 after weaker-than-expected January-March earnings and a planned $2 billion equity fundraise disappointed investors.

Sun Pharmaceutical gained over 6.8% to ₹1,731 after announcing the acquisition of Organon in a $11.75 billion deal, which strengthened its global scale and revenue outlook.

IDFC First Bank gained around 4.7% to ₹70.45 after reporting a 5% YoY rise in January-March net profit and a 16% increase in net interest income, which improved investor sentiment.

IndusInd Banksurged nearly 6.1% to ₹900 after brokerages raised target prices following strong sequential profit recovery and improving asset quality trends.

Coal India traded lower at 0.33% to ₹454 ahead of its January-March earnings announcement as investors remained cautious on the impact of softer coal prices and margin trends.

Reliance Industries recovered from early losses and gained around 3% to ₹1,370 despite reporting weaker-than-expected earnings, as buying emerged at lower levels.

One MobiKwik Systems surged 19.6% to ₹202.22 after the Reserve Bank of India approved the company’s application for an NBFC licence, which boosted optimism around its lending business expansion.

Power Mech Projects gained after securing a ₹2.28 billion order from South Western Railway to develop a Vande Bharat Sleeper Trains maintenance depot in Karnataka under EPC mode.

Mangalore Refinery and Petrochemicals declined nearly 8% after reporting a more than 68% drop in January-March net profit, which weighed heavily on investor sentiment.

Cohance Lifesciences hit the 20% upper circuit at ₹432.70 after appointing Umang Vohra as Executive Chairman and Group CEO, strengthening expectations around strategic growth initiatives.

India Cements gained over 13% to ₹462 after reporting stronger-than-expected January-March earnings, which triggered sharp buying interest in the stock.

Hindustan Zinc gained 5% to ₹618.20 after the company announced strong quarterly and full-year 2025-2026 financial results, supporting investor confidence.

Mahindra & Mahindra Financial Services surged 8.6% to ₹319.55 after strong buying interest emerged in financial stocks following the company’s earnings update.

Futures & Options
Nifty April 2026 futures closed at 24,127, trading at a premium of 34.30 points to the spot Nifty 50 close of 24,092.70, indicating improved trader sentiment after equities rebounded sharply during the session. The index gained 194.75 points or 0.81% in the cash market, supported by broad-based buying across sectors.

Market volatility moderated, with India VIX declining 6.77% to 18.38, reflecting easing near-term risk perception amid improving sentiment around developments in West Asia. In the F&O segment, HDFC Bank, Infosys and TCS remained the most actively traded stock futures contracts, highlighting continued participation in banking and IT counters. The April 2026 derivatives series is scheduled to expire on 28 April.

Bonds
India's government bond yields moved higher on Monday as hopes of a diplomatic breakthrough between the US and Iran faded following the cancellation of planned negotiations, which added to geopolitical uncertainty and kept oil prices elevated. The benchmark 6.48% 2035 government bond yield stood at 6.9534% in early trade and later settled at 6.9418%, compared with 6.9365% in the previous session.

Investor sentiment remained cautious as rising tensions in West Asia continued to support Brent Crude prices, increasing concerns around imported inflation and India’s external balances. Traders noted that the recent rise in oil prices reflected supply-related anxieties rather than underlying demand fundamentals, leaving import-dependent economies such as India vulnerable to prolonged geopolitical disruptions.

Forex
Indian rupee closed marginally stronger on Monday as dollar sales by state-run banks helped cushion pressure from elevated crude oil prices and stalled US-Iran talks. The currency ended at 94.19 against the US dollar, compared with the previous close of 94.2475.

Market participants indicated that state-run banks likely sold dollars on behalf of the Reserve Bank of India to stabilise the rupee early in the session. However, gains remained limited as Brent Crude prices rose nearly 3% amid continued disruptions in the Strait of Hormuz, keeping concerns elevated over India’s inflation outlook, fiscal balance and import bill.

Crypto
Crypto markets traded firmly higher on Monday, with broad-based buying pushing major digital assets into positive territory as investors responded to improving risk sentiment and strong institutional inflows. Bitcoin gained 1.6% over the past 24 hours to trade at $79,002.70, moving closer to the key $80,000 mark. The cryptocurrency continued to attract investor interest despite elevated geopolitical tensions and oil prices above $100 per barrel.

Ethereum outperformed Bitcoin, rising 2.84% to around $2,384, supported by nearly $155 million in weekly ETF inflows and strong technical support near the $2,300 level. Broader market sentiment also improved following developments such as Aave proposing a $73.5 million ETH unfreeze plan, which boosted confidence across decentralised finance assets.

US Stock Futures
US stock futures traded largely flat on Monday as investors evaluated reports that Iran had proposed reopening the Strait of Hormuz while delaying nuclear negotiations. Futures on the S&P 500 and Nasdaq-100 were broadly unchanged after both benchmarks ended last week at record highs, while futures linked to the Dow Jones Industrial Average declined around 0.2%.

Market sentiment remained cautious as investors monitored geopolitical developments in West Asia alongside a crucial earnings week for major technology companies. Reports that Iran may ease restrictions in the Strait of Hormuz provided some relief, but concerns over inflationary pressures persisted as disruptions to global energy and supply flows continued to threaten higher costs across industries.

US Treasury Notes
Yields on US Treasury traded largely steady on Monday as investors prepared for a critical week featuring the Federal Reserve policy decision and major corporate earnings announcements. The benchmark 10-year Treasury yield held near 4.314%, while the policy-sensitive 2-year yield edged slightly higher to 3.786%.

Market participants remained focused on the upcoming Federal Reserve meeting, which could potentially be Jerome Powell’s final meeting as chair ahead of a possible leadership transition to Kevin Warsh in May. Bond yields also continued to reflect concerns around persistent inflation risks, as stalled US-Iran peace negotiations kept Brent Crude above $107 per barrel, maintaining pressure on energy prices and inflation expectations.

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