Indian bulls on front foot as market sees endgame in sight for West Asia war; stocks jump
"Market is breathing a sigh of relief,” Deven Choksey, Managing Director at D R Choksey FinServ, told Business Today. "Focus on large caps and invest in quality stocks where earnings visibility is seen."
- Apr 6, 2026,
- Updated Apr 6, 2026 3:45 PM IST
Equities surged on Dalal Street, and elsewhere in Asia, on news that a ceasefire was imminent in war torn Middle East and that the key sea passage would be re-opened later this month, providing much needed respite to beaten down stocks. Oil prices dipped.
"Market is breathing a sigh of relief,” Deven Choksey, Managing Director at D R Choksey FinServ, told Business Today. "Focus on large caps and invest in quality stocks where earnings visibility is seen."
News Agency Reuters quoted an unnamed source as saying the modalities of an "immediate ceasefire" between Iran and the United States was on the table. A "two-tier” cessation of conflict will see the Straits of Hormuz opening with 15-20 days and Iran getting a relief from sanctions in exchange for stopping its nuclear weapons programme.
As a consequence, the Nifty rallied more than 400 points from intra-day low, closing 1.1 per cent higher at 22,966. Gains were higher and widespread in the midcap, small cap and banking sector where indices posted rallies of 800 to 1,100 points.
Stocks in South Korea, Japan – both heavily dependent on oil imports from the Middle East – rose too. As did futures in the US and European equity markets. Oil fell more than 2 per cent form intra-day high of $114 per barrel, bringing relief to many equity investors.
The US & Israel have been locked into a massive conflict with oil-rich Iran for the past six weeks. The war has engulfed the wider Gulf and knocked out oil supply from the Middle East causing untold misery from Australia to Europe.
Industries have had their gas supplies derailed in India, fuel depots have run dry in Australia, Helium supplies to semi-conductor fabs are under threat and stock markets across the world have plunged.
India, which imports 85 percent of it’s energy needs, has been among the worst hit. The rupee plunged 4.5 percent in the past month and the main index dropped 11.5% in March alone as investors grappled with earnings downgrades and a worsening macro balance sheet.
Oil, India’s biggest import item, surged nearly 70 per cent in March, hitting a near 4-year high.
Sweta Rajani, Head – Mutual Funds, at Anand Rathi Wealth said equity fund managers had utilised a decent percentage of cash on their books to buy the fall in stock prices during March.
Sectors that saw value buying were pharma, software and the defence space.
Mumbai-based Rajani suggested new investors to have a large-cap bias in their fund portfolio and that the following schemes provided longer term wealth creation possibilities. She listed ICICI Prudential Dividend Yield Fund, HDFC Flexi Cap Fund, Kotak Multi cap Fund, Invesco Small Cap Fund and Bandhan Large and Midcap Fund as potential outperformers in the 5–7-year time frame.
Choksey further noted that while the current quarter may see some impact due to collateral damage from global developments, a stabilisation in the war-related news flow could support recovery in the subsequent part of the year.
Equities surged on Dalal Street, and elsewhere in Asia, on news that a ceasefire was imminent in war torn Middle East and that the key sea passage would be re-opened later this month, providing much needed respite to beaten down stocks. Oil prices dipped.
"Market is breathing a sigh of relief,” Deven Choksey, Managing Director at D R Choksey FinServ, told Business Today. "Focus on large caps and invest in quality stocks where earnings visibility is seen."
News Agency Reuters quoted an unnamed source as saying the modalities of an "immediate ceasefire" between Iran and the United States was on the table. A "two-tier” cessation of conflict will see the Straits of Hormuz opening with 15-20 days and Iran getting a relief from sanctions in exchange for stopping its nuclear weapons programme.
As a consequence, the Nifty rallied more than 400 points from intra-day low, closing 1.1 per cent higher at 22,966. Gains were higher and widespread in the midcap, small cap and banking sector where indices posted rallies of 800 to 1,100 points.
Stocks in South Korea, Japan – both heavily dependent on oil imports from the Middle East – rose too. As did futures in the US and European equity markets. Oil fell more than 2 per cent form intra-day high of $114 per barrel, bringing relief to many equity investors.
The US & Israel have been locked into a massive conflict with oil-rich Iran for the past six weeks. The war has engulfed the wider Gulf and knocked out oil supply from the Middle East causing untold misery from Australia to Europe.
Industries have had their gas supplies derailed in India, fuel depots have run dry in Australia, Helium supplies to semi-conductor fabs are under threat and stock markets across the world have plunged.
India, which imports 85 percent of it’s energy needs, has been among the worst hit. The rupee plunged 4.5 percent in the past month and the main index dropped 11.5% in March alone as investors grappled with earnings downgrades and a worsening macro balance sheet.
Oil, India’s biggest import item, surged nearly 70 per cent in March, hitting a near 4-year high.
Sweta Rajani, Head – Mutual Funds, at Anand Rathi Wealth said equity fund managers had utilised a decent percentage of cash on their books to buy the fall in stock prices during March.
Sectors that saw value buying were pharma, software and the defence space.
Mumbai-based Rajani suggested new investors to have a large-cap bias in their fund portfolio and that the following schemes provided longer term wealth creation possibilities. She listed ICICI Prudential Dividend Yield Fund, HDFC Flexi Cap Fund, Kotak Multi cap Fund, Invesco Small Cap Fund and Bandhan Large and Midcap Fund as potential outperformers in the 5–7-year time frame.
Choksey further noted that while the current quarter may see some impact due to collateral damage from global developments, a stabilisation in the war-related news flow could support recovery in the subsequent part of the year.