Equities Snap Three-Day Losing Run as Iran Nuclear Signals Lift Risk Appetite

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

March 5, 2026 at 11:36 AM IST

Indian equity benchmarks snapped a three-session losing streak on Thursday, posting their best session in over a month, as signs of easing West Asia tensions lifted global risk appetite and triggered a broad-based recovery across domestic markets. The Nifty50 rose 1.17% or 285.40 points to 24,765.90, while the BSE Sensex gained 1.14% or 899.71 points to 80,015.90, with sentiment turning sharply positive after Iran's Foreign Minister signalled the country was ready to abandon its nuclear programme if the US presented a satisfactory alternative offer. Nifty heavyweight Reliance Industries surged 3.3%, recovering from a 4.5% decline over the previous three sessions, with brokerages JM Financial and CLSA noting the recent correction had been overdone. Adani Ports and Special Economic Zone, Hindalco Industries and Larsen & Toubro were among the top gainers in the Nifty 50.

Fifteen of the 16 major sectors closed in the green, with Nifty Metal leading the charge with a 2.3% gain, followed by Nifty Oil and Gas and Nifty Consumer Durables among the top sectoral performers. Broader markets outperformed the benchmarks, with the Nifty MidCap 100 and Nifty SmallCap 100 rising 1.52% and 1.58% respectively. Buying was particularly strong in metals, pharma, realty, oil and gas and midcap-heavy segments, while FMCG and IT remained under mild pressure and banking showed a mixed trend. Analysts noted that the overall tone pointed to selective risk appetite returning to the market, with cyclical sectors leading the recovery momentum after the recent geopolitical-driven selloff.

Top Movers of the Day

MRF surged around 4% to trade near ₹1,40,000 after strong buying interest in high-priced auto component stocks lifted the counter.

Larsen & Toubro rebounded 3% to ₹4027 on the BSE on value buying, having declined nearly 9% over the previous two sessions amid the broad market selloff.

BSE Ltd gained nearly 5% to around ₹2,771, extending momentum in exchange-linked stocks despite broader market volatility.

Coal India rose about 2% to ₹448 after stronger e-auction realisations supported sentiment in the PSU mining major.

Great Eastern Shipping rose over 2% after announcing the acquisition of a 2014-built Japanese Kamsarmax dry bulk carrier of 81,094 deadweight tonnage, to be funded through internal accruals.

Acutaas Chemicals hit a record high of ₹2,213.25, rallying 5% on the BSE on a strong business outlook, marking a fresh all-time peak for the stock.

Bharat Electronics soared 4% to a new high of ₹464.40 on the BSE, surpassing its previous peak of ₹461.40 touched on 1 February 2026, as defence stocks continued to attract buying interest amid the West Asia conflict.

Hindalco Industries surged nearly 7% to an intraday high of ₹983.50, having opened around 1% higher at ₹930, as aluminium prices climbed on supply disruptions stemming from the West Asia conflict.

Lupin hit a fresh 52-week high of ₹2,357.95, gaining 2% on the BSE on a healthy business outlook, edging closer to its all-time high of ₹2,403.45 touched on 2 January 2025.

Futures & Options
Nifty March 2026 futures closed at 24,832, a premium of 66.10 points over the spot Nifty, which jumped 285.40 points or 1.17% to settle at 24,765.90 in the cash market. The narrowing premium relative to recent sessions reflected a more measured rebuilding of positions rather than aggressive bullish conviction, even as sentiment improved on easing West Asia tensions. India VIX tanked 15.52% to 17.86, its sharpest single-session decline in recent weeks, signalling a meaningful pullback in near-term volatility expectations as fears of an immediate geopolitical escalation receded. HDFC Bank, Reliance Industries and Larsen & Toubro were the most actively traded stock futures contracts in the F&O segment on the NSE.

Bonds
Indian government bond yields eased on Thursday, with the benchmark 6.48% 2035 bond yield closing at 6.6427%, down from 6.6732% at Wednesday's close, as likely central bank intervention in both the debt and foreign exchange markets supported sentiment. Clearing house data showed that an investor category comprising insurers, pension funds, corporates and the Reserve Bank of India net bought a record ₹202 billion of bonds on Wednesday, pointing to significant institutional support at higher yield levels. Gains were capped, however, as escalating West Asia conflict, elevated oil prices and broader macroeconomic concerns continued to weigh on risk appetite in the market.

Forex
The Indian rupee posted its biggest single-day gain in a month on Thursday, climbing 0.6% to close at 91.60 per dollar and touching an intraday high of 91.4125, as the Reserve Bank of India stepped in aggressively to shore up the currency following Wednesday's record low of 92.3025. Traders pointed to heavy dollar sales by state-run banks as the primary driver of the recovery, with bankers widely expecting the central bank to remain on guard as geopolitical risks from the West Asia conflict continue to pose a threat to the rupee's stability.

Crypto
Crypto markets staged a sharp and swift relief rally on Thursday as cooling West Asia tensions drove investors back into risk assets, with Bitcoin surging 7.77% to $72,774, pushing its market capitalisation to $1.45 trillion on trading volume of over $74 billion. Ethereum outpaced Bitcoin's gains, jumping 9.19%, as the total crypto market capitalisation recovered to $2.46 trillion, reversing much of the fear-driven selloff of recent sessions in what traders described as one of the more emphatic single-day recoveries for the asset class in recent weeks.

US Stock Futures
US stock futures slipped early on Thursday, giving back some of the previous session's gains as investor nerves around the US-Iran conflict remained present despite showing early signs of easing. S&P 500 futures fell nearly 0.3%, Nasdaq 100 futures shed a similar 0.3%, and Dow Jones Industrial Average futures declined 183 points or roughly 0.4%, pointing to a cautious open on Wall Street after major averages had posted gains in the prior session.

US Treasury Notes
US Treasury yields continued their four-day climb on Thursday, driven by escalating West Asia tensions and robust domestic economic data, as markets increasingly priced in the risk that a prolonged conflict and rising energy prices could trigger an inflationary spiral. The benchmark 10-year note yield rose to 4.12%, while the 30-year bond yield climbed to 4.76%, as traders scaled back expectations for Federal Reserve rate cuts, pushing out the anticipated timing of the next reduction from July to September.

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