Nifty rallies 9.9% as ceasefire cools oil shock in 2026

Relief rally lifts benchmarks to multi-week highs

Dalal Street extended its rebound as signs of an extended ceasefire in West Asia cooled crude prices and brought risk appetite back to equities. The Nifty 50 climbed to its highest level since early March, supported by broad-based buying and aggressive short covering in derivatives. The move also marked a second week of gains, with traders citing attractive valuations after the earlier sell-off. In the banking space, the Bank Nifty also posted a sharp jump to a multi-week peak.

Market participants linked the turn in sentiment to easing geopolitical risk after a period in which rising oil prices had triggered a global equity sell-off. With crude reversing, oil-sensitive stocks and domestic cyclicals featured among the leaders. The bounce came alongside renewed interest across market capitalisations, as investors looked beyond the most liquid names.

Ceasefire headlines ease pressure on crude

Hostilities between energy-rich Iran and the US-Israeli militaries paused, and US President Donald Trump announced a two-week ceasefire as talks moved into face-to-face meetings. Oil, which had spiked during the escalation, was reported to have fallen 20% from the surge that earlier rattled global markets. In another data point captured during the relief trade, Brent crude was cited as down over 13% amid the ceasefire trigger.

Lower crude tends to reduce near-term inflation anxiety and supports margins for oil-consuming sectors, which helped explain the speed of the rebound. Traders also pointed to hopes around the Strait of Hormuz remaining open, after earlier fears about supply disruptions. The combination of geopolitical relief and softer energy prices became a key driver for equity risk-taking.

What drove the pace: short covering and value buying

The rally was described as a mix of fresh buying and covering of short positions across the last 10 sessions. Nifty surged 2,200 points, or 9.9%, to its highest since March 9, while Bank Nifty jumped 13%, or 6,500 points, to a multi-week peak. A market participant quoted in the report said valuations had become “very attractive across the board: from large caps to small caps.”

The breadth of the move stood out. Twenty stocks from the 50-share Nifty benchmark were reported to be up 10% to 25% so far in April, including Adani Enterprises, Trent, Tata Motors, Adani Ports and Shriram Finance. The recovery followed a period of sharp risk aversion, when higher crude and geopolitical concerns pressured equities.

Sectoral leaders: metals and real estate outpace

Cyclical sectors posted outsized gains. The Metals index jumped 15%, and the Real Estate benchmark surged 20%, as corporate actions to safeguard margins supported confidence in earnings resilience. Realty and metals were also listed among the day’s gainers in another market snapshot, alongside private banks and Oil and Gas.

Lagging pockets were also visible. PSU Banks, FMCG, and Autos were cited as underperformers in one of the market updates, even as mid and smallcaps outperformed at the index level. India VIX was reported to have jumped nearly 4% during the period, indicating that volatility remained elevated even as prices rose.

Adani in focus as group stocks lead gains

Adani-linked shares featured prominently among the top gainers during the relief rally. In one session recap, Adani group stocks were reported to have risen up to 13%, adding nearly ₹1 lakh crore in group market capitalisation. Separately, another report described a single-day gain of ₹48,550 crore in Adani Group market capitalisation, with stock-specific moves including Adani Green Energy up 14% (adding ₹14,464 crore in market value), Adani Total Gas up 8.7% intraday (adding ₹1,468 crore), and Adani Ports up nearly 3% (adding ₹8,500 crore).

Adani Enterprises also had company-specific triggers. Its defence subsidiary completed an additional stake acquisition in Flight Simulation Technique Centre Pvt Ltd, taking effective shareholding to 72.8%. The stock rose as much as 5.8% intraday to ₹1,973.9 per share, and was reported at about 5% higher at ₹1,960 around midday, even as the Nifty 50 was marginally lower in that specific time window.

Corporate developments: green hydrogen pilot and aerospace pact

Adani Enterprises also commissioned what was described as India’s first off-grid green hydrogen pilot plant, with the stock rising 1.5% in that context. Another Bloomberg-cited development said Adani Defence and Brazil’s Embraer SA would set up an aircraft manufacturing facility in India, although the type of aircraft was yet to be decided.

These corporate updates came against the backdrop of regulatory attention on the group. A report noted the US SEC had asked a US court for permission to personally email summons to Gautam Adani and executive Sagar Adani over alleged fraud and a $165 million bribery scheme. Despite intermittent dips, markets were also described as having largely “shrugged off” losses tied to earlier claims.

Regulatory overhang and the Hindenburg chapter

Another strand supporting sentiment around Adani stocks was the market regulator’s order dismissing allegations of stock manipulation and related-party misuse linked to the Hindenburg Research accusations from early 2023. In the cited update, Adani Group firms added ₹1,78,598.41 crore in market valuation over two days after Sebi concluded its investigation and said it found no evidence supporting those accusations.

Price moves in that rally included Adani Power jumping 19.99% to ₹170.15, Adani Total Gas up 19.87%, Adani Green Energy up 11.75%, Adani Energy Solutions up 6.94%, and Adani Enterprises up 4.24%.

Macro overlay: RBI holds repo at 5.25%

In parallel, the Reserve Bank of India maintained the repo rate at 5.25% and kept a neutral stance, while flagging global risks to inflation and supply chains. The RBI was also reported to have projected FY2027 GDP growth at 6.9%, and inflation at 4.6%, while noting that forex reserves remained comfortable.

For equities, a steady policy rate can reduce uncertainty around domestic borrowing costs, although the RBI’s caution on global risks underscored the role of commodity prices and supply disruptions in the inflation outlook.

Key market numbers at a glance

What market experts flagged

A market expert, Sharmila Joshi, was quoted saying markets were likely to move “even higher from now on” and that “the worst is behind us,” while highlighting financials, metals, FMCG, pharma and capital goods as sectors that can do well. Another market guest, Shaina Mukadam, flagged an upward trajectory with a target of 24,500, while advising selective stock picking, particularly in banking and metals.

The common thread across these views was that the combination of easing geopolitical stress and improved crude dynamics changed the near-term risk-reward. But the presence of a rising volatility index in the same period also showed that markets were still reacting quickly to headlines.

Conclusion: rally fuelled by geopolitics, oil, and positioning

The rally in Indian equities was driven by a rapid shift in global risk perception after a two-week ceasefire announcement and a meaningful pullback in crude. Nifty’s 2,200-point jump and the sharp rise in Bank Nifty reflected both value buying and short covering after a risk-off phase. Adani group stocks remained in focus, aided by a mix of company updates and regulatory developments.

The next set of cues for markets, based on what was reported, will include the durability of the ceasefire, the path of oil prices, and how investors respond to macro signals after the RBI’s 5.25% hold and its risk commentary.