Stock markets rally for second day as crude drops on hopes of de-escalation in West Asia war

Stock markets rallied for the second consecutive day on Wednesday (March 25, 2026), with benchmark indices Sensex and Nifty closing nearly 2% higher as crude oil prices dropped and global markets advanced amid hopes of de-escalation in the war in West Asia.

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

The 30-share BSE Sensex jumped 1,205 points or 1.63% to settle at 75,273.45. During the day, it soared 1,781.31 points or 2.40% to 75,849.76. The 50-share NSE Nifty surged 394.05 points or 1.72% to end at 23,306.45.

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.

“Markets continued to build on the previous day’s momentum as global risk sentiment improved, with hopes of peace emerging on the radar. Potential diplomatic progress between the US and Iran—despite mixed geopolitical commentary—led to easing crude oil prices below $100, which was welcomed by the market,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

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).

“The primary trigger for improved sentiment was emerging signals of a potential pause in the ongoing US–Iran conflict. Reports indicating a possible ceasefire framework and diplomatic engagement raised expectations of de-escalation, prompting a risk-on reaction across global markets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

However, with conflicting narratives still in play, the optimism remains fragile and largely anticipatory rather than confirmed, he added.

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.