Bulls held their tight grip over Indian equity markets on Tuesday, with both Sensex and Nifty ending with strong gains as investors pinned hopes for a resolution to the U.S.-Iran war ahead of a potential ceasefire deadline. Sentiment remained upbeat throughout the day on the back of strong corporate earnings, a drop in crude oil prices and supportive global cues.

Some of the important factors in trade: 

India's economy likely to grow at 6.4% in 2026, 6.6% in 2027: Sentiments were optimistic, as the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) in its report titled ‘Economic and Social Survey of Asia and the Pacific 2026’ has said that India's economy is projected to grow at 6.4% in 2026 and 6.6% in 2027.

India’s outward FDI commitments see 27% surge in March: Traders took a note of the Reserve Bank of India’s (RBI) latest report showing that India's outward foreign direct investment (OFDI) commitments surged by 27.47% to $7061.60 million in March 2026 as against $5,539.75 million in March 2025. In February 2026, OFDI commitments stood at $2965.77 million.

Eight key infrastructure sectors’ output growth slows to 0.4% in March:  The Street overlooked the Ministry of Commerce & Industry’s latest data showing that eight key infrastructure sectors’ output growth slowed to 0.4% (provisional) in March 2026 as compared to 4.5% in the same month of last year (March 2025).

Geopolitical tensions in West Asia pose risks to India’s trade, macroeconomic stability: Markets held rally despite NITI Aayog in its quarterly ‘Trade Watch Oct-Dec (Q3) FY 2025-26’ report has said that the geopolitical tensions in West Asia pose risks to India’s trade and macroeconomic stability by widening the current account deficit (CAD), exerting pressure on the exchange rate. 

Firm global cues: European markets were trading mostly in green, while Asian markets settled mostly higher on Tuesday, amid lingering hopes for a deal to end the U.S.-Iran war and reopen the Strait of Hormuz. 

Finally, the BSE Sensex rose 753.03 points or 0.96% to 79,273.33 and the CNX Nifty was up by 211.75 points or 0.87% to 24,576.60.  

The BSE Sensex touched high and low of 79,367.08 and 78,522.96, respectively. There were 23 stocks advancing against 7 stocks declining on the index.

The top gaining sectoral indices on the BSE were FMCG up by 2.23%, Realty up by 2.17%, Bankex up by 1.46%, Telecom up by 1.14% and Consumer Disc up by 0.84%, while Capital Goods down by 0.06% was the only losing index on BSE.

The top gainers on the Sensex were Trent up by 3.55%, Hindustan Unilever up by 3.13%, ICICI Bank up by 2.41%, Bajaj Finance up by 2.28% and HDFC Bank up by 2.04%. On the flip side, Bharat Electronics down by 1.33%, Titan down by 0.88%, Reliance Industries down by 0.66%, NTPC down by 0.45% and Power Grid down by 0.39% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that India is deeply affected by the current turmoil in West Asia, as the region accounts for approximately one-sixth of the country's exports, half of its crude oil imports, and nearly two-fifths of the inward remittances. According to him, India’s economy has sustained resilient growth over the past decade, supported by robust policy frameworks, financial stability, and sound fiscal policies.

He noted that India is increasing its domestic oil and gas production in response to the ongoing crisis. He said ‘Sources of imports are being diversified. While there is no shortage of oil, given the reserves maintained by us, there is some rationing of gas for industrial purposes.’

He underlined that while oil marketing companies and the government have absorbed some of the price pressures in oil, a portion of gas price increases has been passed on to consumers. Besides, he highlighted that India has recorded an average annual growth of 6.1% over the past decade, compared to the global economy's growth rate of 3.2%. Conversely, India’s closest peer economies, including China and Indonesia, posted growth rates of 5.6% and 4.2%, respectively.

CNX Nifty touched high and low of 24,601.70 and 24,354.90, respectively. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Nestle up by 7.27%, Hindustan Unilever up by 3.55%, Trent up by 3.48%, ICICI Bank up by 2.37% and Bajaj Finance up by 2.30%. On the flip side, SBI Life Insurance down by 3.58%, Bharat Electronics down by 1.32%, JIO Financial Serv. down by 1.01%, Dr. Reddy's Lab down by 0.97% and Titan down by 0.74% were the top losers.

European markets were trading mostly in green; Germany’s DAX gained 140.2 points or 0.57% to 24,558.00 and France’s CAC rose 22.15 points or 0.27% to 8,353.20, while UK’s FTSE 100 decreased 6.22 points or 0.06% to 10,602.86.

Asian markets settled mostly higher on Tuesday, even as tensions between Washington and Tehran have escalated ahead of the April 22 ceasefire deadline. US President Donald Trump has signalled that he is unlikely to extend the truce with Iran if no agreement is reached before its expiry Wednesday evening, Washington time. He further threatened to destroy Iran's power plants and bridges if the deal is not finalized. Markets were awaiting the release of US retail sales data and a confirmation hearing for Federal Reserve chair nominee Kevin Warsh later in the day. Kospi shares surged over 2% to a record high after data showed South Korea’s exports grew 49.4% year-on-year in the first 20 days of April. The surge was driven by a sharp rebound in semiconductor shipments, which jumped over 180%, reinforcing optimism over the earnings outlook for the country’s key tech sector.