Indian Stocks Rally as US-Iran Tensions Ease

Indian benchmark equity indices opened sharply higher on Wednesday, July 29, 2026, with the BSE Sensex rising 653.82 points and the NSE Nifty 50 gaining 175.60 points. This surge followed a Tuesday session where markets ended nearly flat, as the Nifty 50 closed at 23,985. The recovery was driven by positive global cues, specifically easing crude oil prices linked to a pause in US-Iran fighting near the Strait of Hormuz.

Donald Trump and the U.S. administration signaled progress in Oman-mediated talks with Iran, which helped stabilize sentiment. This occurred alongside a volatile trade environment; on July 24, the United States implemented new tariffs of 10-12.5% on approximately 60 trading partners, including 50% tariffs on select Canadian goods and 25% on Brazilian imports.

While Indian markets rallied, other Asian markets experienced a severe semiconductor and AI sell-off. South Korea's KOSPI plunged 11 per cent and Japan's Nikkei fell nearly 4 per cent. In India, specific company performance varied, with Coforge jumping 10 per cent on revenue growth, while Hindustan Unilever and Varun Beverages both dropped 7 per cent due to weak earnings. Investors continue to monitor upcoming policy decisions from the Federal Reserve and the Bank of Japan.