India’s BSE Sensex climbed about 1.3% to 75,042 on Wednesday, extending the previous session’s gains as the benchmark tracked advances across Asian markets. Sentiment was supported by reports of a potential US-brokered ceasefire with Iran, which helped ease concerns over elevated oil prices.
Nonetheless, broader market mood remained cautious, with investors unsettled by persistent geopolitical tensions and uncertainty surrounding the outcome of ongoing negotiations. Indian equities have declined roughly 9% so far this month, while the rupee has slid to a record low, contributing to an estimated $11.37 billion in portfolio outflows in March.
On the macroeconomic front, India’s HSBC composite PMI flash reading fell to 56.5 in March from 58.9 in February, undershooting market expectations of 58.7. This marks the slowest pace of expansion since October 2022, reflecting the drag from the continuing conflict in the Middle East.
All major equity sectors traded in positive territory, led by heavyweight financials and consumer names. Notable early gainers included HDFC Bank (+2.7%), Sammaan Capital (+10%), BSE (+1.3%), Eternal (+2.2%), and Mahindra & Mahindra (+2.6%).
