Dalal Street Sees Recovery: Benchmarks Volatile, Sensex Near 75,300, Nifty At 23,650

Indian benchmark indices staged a sharp recovery after a bruising start to the week and managed to end the session marginally higher. The Sensex rose around 77 points to close over 75,300, while the Nifty edged up merely 6 points to settle at 23,650.

Previously, during the early morning session, the Sensex opened trading around 74,400, crashing 800 points, while the NSE Nifty50 rang the opening bell near 23,400, falling more than 200 points, as of 9:15 AM.

Markets Open Sharply Lower On Gulf Fears

The recovery was all the more notable given the depth of early losses. The Sensex opened around 74,400, down nearly 800 points, while the Nifty50 started near 23,400, off more than 200 points, as of 9:15 AM. GIFT Nifty had already flagged a weak start, trading 105 points lower at 23,539 in the pre-market session.

Sentiment had turned cautious after US President Donald Trump escalated his warnings against Iran, writing on social media that the time was “ticking fast” and that if Tehran did not act soon, “nothing will be left.” The remarks had deepened fears of a prolonged conflict in the region.

Asia-Pacific Markets Stayed Under Pressure

Even as Indian markets recovered, equity markets across the Asia-Pacific region remained under pressure. Japan’s Nikkei 225 fell 1.06 per cent, and Hong Kong’s Hang Seng dropped 1.09 per cent.

On Friday, US markets also closed sharply lower. The Nasdaq Composite fell 1.54 per cent, while futures tied to the S&P 500 and Dow Jones Industrial Average were deep in the red.

Brent Crude Crosses $111 On Gulf Disruptions

Oil prices continued to rise as the situation in West Asia deteriorated. Brent crude futures for May delivery climbed 1.78 per cent to $111.13 per barrel on the Intercontinental Exchange.

A drone strike reportedly caused a fire at a nuclear power facility in the United Arab Emirates over the weekend, while Saudi Arabia said it had intercepted multiple drones. India, which is heavily dependent on oil imports, faces the prospect of rising inflation and pressure on corporate margins as energy costs climb. The Strait of Hormuz, through which nearly one-fifth of global oil and gas trade passes, remains under threat as the conflict continues.

Also Read: Bloody Monday Strikes Markets: Sensex 800 Points Down, Nifty Near 23,400

Fuel Prices And Inflation Add Domestic Pressure

The government recently raised fuel prices by Rs 3 per litre. Union Minister Kiren Rijiju defended the move, noting that petrol and diesel prices in India rose by only 3.2 per cent and 3.4 per cent respectively, against increases of 20 to 100 per cent seen in several other countries.

A report by Systematix Institutional Equities warned of widening stress across the economy. WPI inflation rose to 8.3 per cent in April 2026, a 42-month high, with the fuel and power segment surging to 24.71 per cent. The finance ministry has revised its CPI inflation forecast for FY27 to 5.5 to 6 per cent, above the RBI’s own projection of 4.6 per cent. The Rs 3 per litre hike covers only 7 to 8 per cent of cumulative under-recoveries built up over months of unchanged retail prices, the report noted.

Agriculture And Rural Demand Face Mounting Risks

Rabi output and reservoir levels offer some near-term support to agriculture, but risks are building. Higher fertiliser prices, supply disruptions affecting urea imports from the Gulf, and the possibility of a deficient monsoon are weighing on the farm sector.

Rural inflation is rising faster than urban inflation, making rural demand increasingly vulnerable.

FII Buying Helped Cushion The Fall

Foreign Institutional Investors remained net buyers on Friday, picking up equities worth Rs 1,329.17 crore, according to exchange data. Continued FII interest is seen as one of the factors that helped the market recover through the session.

Precious metals traded mixed. Gold steadied after touching its lowest level in over a month earlier in the session, while silver declined sharply. Market participants are now watching for the minutes of the US Federal Reserve’s April meeting later this week for guidance on the interest rate outlook.

Q4 Earnings In Focus

Several companies are scheduled to announce their March quarter results today, including Indian Oil Corporation, Ola Electric Mobility, Astral, Indraprastha Gas, JSW Cement, Puravankara, Timken India, Triveni Turbine and Zydus Wellness.

Investor attention will be on corporate commentary around demand trends, margins and the effect of rising commodity prices on business performance.

Also Read: Will The Rupee Hit 100 Against Dollar? Analysts Warn As Oil Prices Rise

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