Stock markets up 1.7% as investor optimism crawls back

Indian benchmark stock indices were up 1.7% as clarity on Iran-U.S. war strengthened, making investors optimistic, on March 25, 2026.

Nifty 50 and Sensex opened at 23064 and 74652 points and improved steadily to the day’s high of 23434.75 and 75735.6 points, before closing at 23,306.45 and 75,273.45 points respectively.

Tech Mahindra, Power Grid, Tata Consultancy Services and Bharat Electronics were the laggards. Brent crude, the global oil benchmark, tanked 5.07% to $99.19 per barrel.

The improving optimism in the market is an outcome of easing crude prices. Brent crude futures closed at $96 a barrel, marking a meaningful slowdown.

The stock market rout ever since mid-February, responding to heightened U.S.-Israel-Iran tensions oozed into the market through oil prices. With Strait of Hormuz closed, it shot to as high as $114 with some economists even factoring in macroeconomic effects of $120 a barrel.

“Indian equities extended their recovery for the second consecutive session, supported by improving global cues and emerging hopes of a potential de-escalation in the ongoing U.S.-Iran conflict. Investor sentiment stabilised as both sides signalled a willingness to engage in talks, helping calm nerves after the recent sharp sell-off,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. said.

“Going ahead, the ongoing recovery is likely to remain fragile and contingent on further clarity around geopolitical developments,” he said.

Also read: War in West Asia live updates on March 25, 2026

The BSE SmallCap Select index jumped 3.05% and the MidCap Select index climbed 2.50%.

All sectoral indices ended higher. BSE MidSmall Private Banks Quality Tilt surged 3.70%, followed by commodities (2.75%), PSU banks (2.61%), realty (2.53%), metals (2.51%), industrials (2.49%) and services (2.42%). A total of 2,959 stocks advanced, while 1,357 declined and 156 remained unchanged on the BSE.

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 higher. Markets in Europe were trading in positive territory.

The U.S. market ended lower on Tuesday (March 24, 2026).

Foreign Institutional Investors (FIIs) offloaded equities worth ₹8,009.56 crore on Tuesday (March 24, 2026), according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹5,867.15 crore.

On Tuesday (March 24, 2026), the Sensex jumped 1,372.06 points or 1.89% to settle at 74,068.45. The Nifty surged 399.75 points or 1.78% to end at 22,912.40.

(with inputs from PTI)