Indian equity benchmarks erased all of their initial losses and staged a sharp rebound to end over a percent higher on Monday following a correction in crude oil prices amid reports of ceasefire efforts in the ongoing West Asia war. Besides, intense buying in Consumer Durables, Realty and Banking stocks also supported investor sentiments. 

Some of the important factors in trade:

March 2026 sees cooling in India’s services sector growth; PMI at 57.5: India’s services sector witnessed slower expansion in the month of March 2026, rising at the softest pace in 14 months.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 57.5 in March from 58.1 in February. 

India, UK FTA may come into force in next 30 to 45 days:  Commerce and Industry Minister Piyush Goyal said that the India-UK free trade agreement (FTA), signed in July last year, is likely to come into force in the next 30-45 days. 

Moody’s slashes India’s GDP growth forecast to 6% for FY27: Moody's Ratings in its credit opinion report on India has cut India's economic growth estimates for the current fiscal (FY27) to 6% from an earlier 6.8%, noting that ongoing conflict in West Asia will moderate growth momentum and raise inflation risks. 

Trump’s 100% tariffs unlikely to impact Indian pharma players: After US president Donald Trump imposed 100% ad valorem duty rate on the import of certain patented pharmaceuticals and associated pharmaceutical ingredients, on April 2, the think tank Global Trade Research Initiative (GTRI) said that the decision is unlikely to significantly impact India, given its dominance in low-cost generic drug exports to the US. 

Global front: European markets were closed due to the Easter holiday. Asian markets settled mostly higher in thin trade after reports emerged that the United States and Iran are engaged in indirect negotiations to explore a potential 45-day truce that could lead to a more permanent resolution to the conflict. 

Finally, the BSE Sensex rose 787.30 points or 1.07% to 74,106.85 and the CNX Nifty was up by 255.15 points or 1.12% to 22,968.25.

The BSE Sensex touched high and low of 74,207.46 and 72,728.66, respectively. There were 28 stocks advancing against 2 stocks declining on the index.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.30%, Realty up by 2.26%, Bankex up by 2.03%, Utilities up by 1.94% and Consumer Discretionary up by 1.60%, while Energy down by 1.03% and Oil & Gas down by 1.03% were the few losing indices on BSE.

The top gainers on the Sensex were Trent up by 7.89%, Axis Bank up by 3.94%, Titan Company up by 3.58%, Larsen & Toubro up by 3.19% and Ultratech Cement up by 3.06%. On the flip side, Reliance Industries down by 3.41% and Sun Pharma down by 0.03% were the top losers.

Meanwhile, amid ongoing U.S. and Israeli operations in Iran, Commerce Secretary Rajesh Agrawal has stated that India’s exports to global markets could be affected if the West Asia conflict continues. He added, however, that exports for the previous financial year are still expected to remain on a positive trajectory despite the crisis. He noted that the situation has already had a noticeable impact on both imports and exports in the past month, particularly because energy constitutes a significant share of India’s import market.

He noted that West Asia is an important market, accounting for around 12-13% of India’s exports, and exports to the said region would be directly affected. He added that if the conflict persists, exports to other parts of the world could also be impacted as global value chains adjust. He emphasized that the government is aware of the situation and monitoring it closely. He further stated that the exact impact of the West Asia crisis on Indian exports will become clearer in the coming weeks.

He also said the Centre is working to minimise disruptions to supply chains as much as possible, even as it prepares for a potential decline in both exports and imports. He noted that the impact is unlikely to be one-sided, with imports also expected to fall alongside exports. He further explained that even if the conflict ends soon, its effects could persist for months or even years, depending on the extent of damage to supply chains and infrastructure. He added that at this stage, it is difficult to take a long-term view of the situation. He added that various arms of the government are working together to prioritise the limited supply of LPG and mitigate shortages, including by diversifying imports and sourcing from alternative suppliers. He further said that the government and industry are collaborating to identify ways to strengthen and make supply chains more resilient.

CNX Nifty touched high and low of 22,998.35 and 22,542.95, respectively. There were 43 stocks advancing against 7 stocks declining on the index.    

The top gainers on Nifty were Trent up by 8.00%, SBI Life Insurance Company up by 3.74%, Titan Company up by 3.58%, Adani Enterprises up by 3.56% and Shriram Finance up by 3.50%. On the flip side, Reliance Industries down by 3.30%, ONGC down by 2.04%, Max Healthcare down by 1.23%, Eicher Motors down by 0.86% and JSW Steel down by 0.77% were the top losers. 

Asian markets settled mostly higher in thin trade on Monday, as most regional markets remained closed for holidays. Chinese and Hong Kong markets were shut to celebrate the Qingming Festival, while Taiwan market also closed for the tomb-sweeping holiday. Investors turned cautiously optimistic on prospects for a Middle East ceasefire. The US, Iran, and a group of regional mediators are reportedly negotiating terms for a potential 45-day truce that could pave the way for a lasting resolution to the conflict, even as US President Donald Trump threatened to intensify military strikes on Iran if it did not make a deal and reopen the Strait of Hormuz by this Tuesday deadline. Japan’s Prime Minister Sanae Takaichi told lawmakers recently that Japan was releasing its reserves and was working on alternative routes. South Korea’s trade ministry said it plans to dispatch at least five ships to Saudi Arabi in the coming weeks to establish new oil transport routes in the Red Sea.