Sensex, Nifty climb 0.8% as Hormuz risk eases

Market closes higher on short covering

Indian benchmark indices BSE Sensex and NSE Nifty ended higher, rising about 0.8% each, as short covering combined with improving global sentiment. Market participants cited better risk appetite after reports pointed to a possible de-escalation between the US and Iran, specifically around the Strait of Hormuz. The move helped sentiment even as crude prices remained elevated.

The Nifty closed at 24,092.70, up 194.75 points, or 0.81%. The other benchmark was reported at 77,303.63, up 639.42 points, or 0.83%. Buying interest in Reliance Industries, Sun Pharmaceuticals, HDFC Bank, and select IT shares supported the rise.

Global cues: Strait of Hormuz developments in focus

A key driver for the day’s strength was improving global sentiment tied to geopolitics. The market move followed reports that Iran had shared a new proposal with the US linked to reopening the Strait of Hormuz and ending the war. At the same time, the report also mentioned the postponement of nuclear negotiations to a later stage, adding mixed signals to the broader narrative.

Despite the uncertainty, the possibility of reduced supply disruption risks was seen as supportive for global risk assets. Hariprasad K, a SEBI-registered Research Analyst and Founder at Livelong Wealth, attributed the domestic rebound to the improving global backdrop and the easing of supply disruption concerns.

The US President Donald Trump also commented that Iran could telephone if it wants to negotiate an end to the two-month war. Investors tracked these headlines closely through the session.

Oil stays above $101, but markets look through it

Brent crude remained above the $101 per barrel level during the session. Ordinarily, crude above $100 tends to pressure import-dependent economies and raise inflation concerns. In this instance, investors largely chose to look past high oil prices, focusing instead on the possibility that shipping lanes and supply routes could normalise if tensions cooled.

Hariprasad K said domestic-oriented sectors helped support the recovery even as markets continued to assess the outlook for reopening of the Strait of Hormuz. He flagged banking, FMCG, capital goods, consumer discretionary, and manufacturing-related businesses as areas that helped stabilise sentiment.

Heavyweights lift benchmarks

Large index constituents helped anchor the move. Buying in Reliance Industries and HDFC Bank provided support, alongside a couple of IT names mentioned as contributors to the day’s rise. The advance was also linked to short covering after earlier selling pressure.

According to Hariprasad K, the recovery suggested selective accumulation of quality stocks at lower levels. Broader markets also participated, reflecting improved sentiment beyond just the index heavyweights.

Sun Pharma rallies on Organon acquisition announcement

Sun Pharmaceuticals Industries led the Sensex gainers, rising 6.98% to Rs 1,732.95. The stock reacted to the company’s announcement that it would acquire Organon & Co for $14 per share in cash. The deal value was stated as approximately $1.99 billion in total equity value.

The acquisition is structured as an all-cash transaction to buy all outstanding shares. The enterprise valuation was cited at approximately $11.75 billion. The announcement stood out as a key single-stock driver in the benchmark’s gainers list.

Reliance Industries gains despite muted Q4 results

Reliance Industries rose 3.19% to Rs 1,370. The move came as investors placed emphasis on Reliance Jio Platform Ltd, while the market appeared to look through what was described as muted Q4 results.

With Reliance being a heavyweight, its move provided meaningful support to the benchmark’s advance. The session reinforced how a narrow set of large stocks can influence index direction, even when broader uncertainties remain.

A separate session: Friday gains led by FMCG and utilities

In another session referenced, domestic equity benchmarks climbed on Friday, supported by gains in FMCG, utilities, banking and power stocks amid rising hopes of de-escalation in the US-Iran conflict. The Sensex advanced 504.86 points, or 0.65%, to settle at 78,493.54, while the Nifty gained 56.80 points, or 0.65%, to close at 24,353.55.

Among Sensex constituents that day, Hindustan Unilever (HUL) was the top gainer, rising 4.75% to Rs 2,241.10. Power Grid Corporation gained 1.86%. Reliance Industries, Bharat Electronics (BEL), Tech Mahindra and Titan Company rose 1.61%, 1.56%, 1.41% and 1.34%, respectively.

The note also said Sun Pharma, Mahindra & Mahindra (M&M) and HCL Technologies were among the losers on the index, with declines up to 1.06%.

Sector performance and key contributors

On the Friday session cited, sectoral indices showed leadership from defensives and rate-sensitive segments. The BSE FMCG index gained 2.48% to 18,367.56, while the BSE Utilities index climbed 1.45% to 6,014.91.

Five stocks were highlighted as key contributors to the Sensex’s rise: Reliance Industries, HUL, HDFC Bank, State Bank of India (SBI) and ITC. The split underscores how index gains can often be explained by a small number of large constituents.

Key numbers at a glance

Why this matters for investors

The sessions highlight a familiar pattern for Indian equities during periods of geopolitical uncertainty: sharp headline-driven swings can be moderated when markets see plausible paths to de-escalation. Even with Brent holding above $100, risk appetite improved on signals linked to the Strait of Hormuz.

They also show the market’s reliance on heavyweight leadership. Moves in stocks such as Reliance Industries, HDFC Bank, and large FMCG names can outweigh broader caution, while event-driven rallies like Sun Pharma’s move on the Organon announcement can add to benchmark strength.

Conclusion

Benchmarks rose on short covering and stronger global cues after reports suggested possible easing of US-Iran tensions around the Strait of Hormuz. Investors also tracked high crude prices, with Brent staying above $101 per barrel, while heavyweight buying and Sun Pharma’s acquisition-led rally supported gains. Market direction in the near term remains sensitive to further confirmed updates on geopolitics, crude, and company-specific developments.