Signs of progress in back channel talks between the US and Iran have lifted global sentiment. President Donald Trump indicated that US naval escorts for ships in the Strait of Hormuz may be withdrawn, signalling easing tensions in the crucial shipping route.
Markets reacted swiftly. US futures and Asian equities moved higher, while crude oil slipped below $108 a barrel. Gold rebounded strongly, gaining more than 2 percent.
GIFT Nifty closed at 24,200 on Tuesday night and climbed to 24,327 in early trade today, indicating a firm opening for Indian markets.
Progress in diplomatic engagement between the US and Iran, along with softer oil prices, pushed US indices to record levels.
Dow Jones rose 356.35 points (0.73 percent) to 49,298.25
S&P 500 gained 58.47 points (0.81 percent) to 7,259.22
Nasdaq surged 258.32 points (1.03 percent) to 25,326.13
Strong corporate earnings also supported the rally.
US futures continued to rise this morning:
Dow up 140 points (0.29 percent)
S&P 500 up 20 points (0.27 percent)
Nasdaq up 150 points (0.54 percent)
Indian ADRs recovered in late trading:
HDFC Bank up 1.73 percent to $25.26
ICICI Bank up 2.04 percent to $26.55
Infosys rose to $12.50
Wipro gained to $2.01
European markets climbed over 1 percent on easing geopolitical concerns and lower crude prices.
In Asia:
South Korea’s Kospi surged 5.6 percent, crossing 7,000
Samsung and SK Hynix jumped about 9 percent
Australia rose 1 percent
Hang Seng gained 0.20 percent
Shanghai Composite advanced 0.50 percent
Indian markets, which opened sharply lower due to war fears, rupee weakness and rising oil, recovered significantly by close.
Sensex rebounded 500 points from the day’s low
Nifty recovered 150 points
However, benchmarks still ended with modest losses, while broader markets outperformed.
Sector trends:
Weak: realty, consumer durables, banks, financials
Strong: auto, FMCG, defence, capital market, pharma
Foreign investors continued heavy selling:
FII net selling: ₹3,621.58 crore
DII buying: ₹2,602.62 crore
In 2026 so far, FIIs have pulled out ₹2.03 lakh-crore, nearing the full-year 2025 outflow of ₹2.40 lakh-crore.
Market closing (May 5):
Sensex: 77,017.79 (-0.33 percent)
Nifty 50: 24,032.80 (-0.36 percent)
Bank Nifty: 54,547.05 (-0.60 percent)
Midcap 100: 60,264.50 (+0.17 percent)
Smallcap 100: 18,182.40 (+0.28 percent)
Stocks in focus
Larsen & Toubro: revenue up 11 percent, profit down 3 percent; below expectations
Mahindra & Mahindra: strong quarter; profit up 42 percent
Coforge: profit surged to ₹612.3 crore
Hero MotoCorp: record revenue and profit
Marico: steady growth
Poonawalla Fincorp: profit jumped 309 percent
Gold recovered Monday’s losses and surged:
Closed at $4,558.60 per ounce (+$35.60)
Rose further to around $4,629 this morning
In Kerala, 22-carat gold fell ₹320 to ₹1,09,400 per sovereign on Tuesday, but is expected to rise today.
Silver climbed to $75.02 per ounce.
Platinum stood at $1,983; palladium at $1,499; rhodium at $9,500.
Copper rose 0.60 percent to $12,969.90
Aluminium gained 1.66 percent
Lead, nickel, tin advanced; zinc declined
Rubber (RSS3, Bangkok): $289.50 per quintal
Coffee up 1.33 percent to 289.30 cents/lb
Palm oil rose to 4,710 ringgit/tonne
Cocoa surged 4.92 percent to $4,074 per tonne, the highest since February. Prices have risen nearly 26 percent in a month amid supply concerns in Ivory Coast and Ghana due to drought and fertiliser cost pressures.
The US dollar index edged down to 98.24 amid easing geopolitical risks.
Euro: $1.172
Pound: $1.3575
Yen: 157.58 per dollar
Yuan steady at 6.83
The rupee weakened further:
Touched 95.40 per dollar
Closed at 95.28
Lower crude may offer some relief, but persistent FII outflows remain a concern.
Brent crude fell sharply:
Down 5 percent to $109.81
Further eased to $107.76 this morning
WTI hovered near $100.35, while UAE Murban crude stood at $105.97.
Bitcoin: $81,150
Ether: above $2,370
Solana: above $86.5
Sensex: 77,017.79 (-0.33 percent)
Nifty 50: 24,032.80 (-0.36 percent)
Bank Nifty: 54,547.05 (-0.60 percent)
Midcap 100: 60,264.50 (+0.17 percent)
Smallcap 100: 18,182.40 (+0.28 percent)
Dow Jones: 49,298.25 (+0.73 percent)
S&P 500: 7,259.22 (+0.81 percent)
Nasdaq: 25,326.13 (+1.03 percent)
Dollar: ₹95.28 (+₹0.19)
Gold (oz): $4,558.60 (+$34.60)
Gold (sovereign): ₹1,09,400 (-₹320)
Brent crude: $109.87 (-$4.57)
