The market opened on the back foot after fresh remarks by Donald Trump threatening strong action against Iran, dragging Asian indices lower. Rising US Treasury yields, a firmer dollar, and Brent crude surging past $107 per barrel stoked inflation fears. A four-year low in India's manufacturing PMI added to the pressure.

However, the sharp decline triggered a steady recovery. Through the mid-morning session, the benchmark indices consolidated in a tight band, signalling a pause in selling pressure.

Momentum picked up post noon. The Nifty carved out higher lows and higher highs, indicating a clear shift in intraday sentiment. The rebound accelerated in the afternoon, pushing the index towards the day's high of 22,782.

In the final hour, mild profit booking emerged, but the index held its ground. The Nifty settled near the day's high at 22,713. The rebound was supported by strength in IT and metal stocks. However, the recovery lacked strong buying conviction. Traders remain cautious, with Middle East tensions keeping volatility elevated and limiting near-term directional clarity.

The S&P BSE Sensex advanced 185.23 points or 0.25% to 73,319.55. The Nifty 50 index rose 33.70 points or 0.15% to 22,713.10. In the two consecutive trading sessions, the Sensex jumped 1.90% while the Nifty added 1.70%.

HCL Technologies (up 3.47%), Infosys (up 1.90%) and HDFC Bank (up 1.21%) boosted the indices today.

In the broader market, the BSE 150 MidCap Index declined 0.24% and the BSE 250 SmallCap Index rose 0.05%.

The market breadth was strong. On the BSE, 2,649 shares rose and 1,589 shares fell. A total of 149 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.03% to 25.52.

The stock market will remain closed tomorrow, 3 April 2026, on account of Good Friday.

Economy:

The HSBC India Manufacturing PMI fell to 53.9 in March 2026 from 56.9 in February, slightly higher than preliminary estimates of 53.8. This marked the weakest improvement in business conditions in nearly four years, as factory output and new orders rose at the slowest pace since mid-2022, weighed down by cost pressures, intense competition, and heightened market uncertainty amid the Middle East conflict.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 1.98% to 7.099 compared with previous session close of 6.961.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 93.2150 compared with its close of 94.7000 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement fell 3.16% to Rs 148,850.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.49% to 100.14.

The United States 10-year bond yield added 1.02% to 4.364.

In the commodities market, Brent crude for June 2026 settlement zoomed $6.90 or 6.82% to $108.06 a barrel.

Global Market:

US Dow Jones futures fell 539 points, indicating a weak start for Wall Street later today.

European shares traded lower on Thursday as fears of an escalation in the US-Iran conflict weighed on global sentiment.

In Switzerland, inflation rose 0.3% YoY in March 2026, higher than February's 0.1% but below expectations. The uptick was driven by housing and energy costs, while declines in food and transport capped gains. On a monthly basis, CPI increased 0.2%, easing from 0.6% in February. Core inflation remained unchanged at 0.4% YoY.

Asian shares ended lower, reversing early gains, after oil prices spiked following remarks by Donald Trump on the Iran conflict.

In his address, Trump said US objectives in Iran were close to being achieved and warned that Washington would strike Iran 'very hard' over the next two to three weeks. He also claimed that Iran had sought a ceasefire, a statement that Tehran has reportedly denied.

Trump added that the US would consider any ceasefire only after the Strait of Hormuz is 'open, free, and clear,' according to his social media remarks. Earlier reports suggested he was open to ending military action even if the strait remained closed.

Overnight on Wall Street, equities closed higher on Wednesday as hopes of a potential de-escalation lifted sentiment, while oil prices eased at the start of the month.

The S&P 500 rose 0.72% to close at 6,575.32, while the Nasdaq Composite gained 1.16% to 21,840.95. The Dow Jones Industrial Average added 224.23 points, or 0.48%, to settle at 46,565.74.

New Listing:

Shares of Sai Parenterals settled at Rs 406.40 on the BSE, a premium of 3.67% compared with the issue price of Rs 392.

The stock debuted at Rs 405, marking a discount of 0.62% to the issue price. The stock has hit a high of Rs 416.20 and a low of Rs 400. On the BSE, over 5.48 lakh shares of the company were traded in the counter.

Shares of Amir Chand Jagdish Kumar (Exports) settled at Rs 175.50 on the BSE, a discount of 17.22% compared with the issue price of Rs 212.

The stock debuted at Rs 195, marking a discount of 10% to the issue price. The stock has hit a high of Rs 197.95 and a low of Rs 175.50. On the BSE, over 12.74 lakh shares of the company were traded in the counter.

Shares of Powerica settled at Rs 390 on the BSE, a discount of 1.27% compared with the issue price of Rs 395.

The stock debuted at Rs 375, a premium of 4% to the issue price. The stock has hit a high of Rs 396.85 and a low of Rs 365.10. On the BSE, 3.02 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Marico advanced 2.46% as the company achieved robust growth in the March quarter. Consolidated revenue rose in the low twenties, fueled by strong volume increases across key segments.

Dhanlaxmi Bank rose 0.53%. The bank reported 23.96% jump in gross advances to Rs 15,130 crore as of 31 March 2026 as against Rs 12,206 crore as of 31 March 2025.

Maruti Suzuki India shed 0.98%. The company reported 19% increase in total production to 2,31,933 units in March 2026, compared with 1,94,901 units produced in March 2025.

V2 Retail added 1.69% after the company reported a 59.92% jump in standalone revenue to Rs 798 crore in Q4 FY26, compared with Rs 499 crore in Q4 FY25.

Karnataka Bank fell 1.11%. The bank reported a 3.8% rise in aggregate deposits to Rs 108,840.95 crore as on 31 March 2026 from Rs 104,807.49 crore as on 31 March 2025.

South Indian Bank added 0.99% after the company reported 15.66% jump in gross advances to Rs 1,01,295 crore as of 31 March 2026 as against Rs 87,579 crore as of 31 March 2025.

Tamilnad Mercantile Bank rose 2.82%. The company said that its total advances jumped 20.32% to Rs 53,380 crore as of 31 March 2026, compared with Rs 44,366 crore as of 31 March 2025.

Indian Oil Corporation (IOC) fell 0.99%. The company reported strong operational performance for the latest fiscal period, posting a 4% growth in consolidated sales of petroleum products to 104.4 million tonnes (MT), up from 100.3 MT in the same period last year.