Sensex, Nifty: 5 reasons why stock market jumped today
Stock market: One factor that enabled the market bounce back is crude remaining around the $102 level despite fears of it spiking above $120, said an analyst.
- Mar 18, 2026,
- Updated Mar 18, 2026 12:50 PM IST
Benchmark stock indices Sensex and Nifty climbed over 1 per cent in Wednesday's trade, tracking a recovery in peer Asian markets, thanks to ease in crude oil prices, ahead of the outcome of two-day Fed policy review where the US policymakers were largely expected to maintain the status quo while emphasising caution regarding inflation risks.
Sensex climbed over 900 points and was later trading at 76,709.39, up 638.55 points or 0.84 per cent. Nifty quoted at 23,766.50, up 181.30 points or 0.77 per cent. This was the third day of consecutive gains for the two barometers, led by buying in select technology and private banking stocks.
ICICI Securities, in a note, said the price-wise median correction during past geopolitical tensions stood at 11 per cent, while the time-wise median was four weeks. It added that buying during such panic phases had generated over 25 per cent returns over the subsequent 3-6 months.
"In current scenario, with past two weeks correction, Nifty has already corrected 9 per cent. Hence, to maintain the same rhythm, Nifty need to stabilise around key support of 22,700 in the coming weeks," the brokerage said.
Oil prices Despite the uncertainty regarding the Iran war, the market has staged a bounce back. One factor that enabled this bounce back is crude remaining around the $102 level and fears of spiking above $120 not materialising, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
"The near-term scenario will be one of markets responding mildly positively to some good news and negatively to bad news," he said.
On Wednesday, Brent oil futures fell 2.2 per cent to $101.13 level. Crude oil prices are up 9.95 per cent in one week and 69 per cent in the past three months.
Technical bounce Analysts said the market was recovering from oversold conditions. The 23,800 level on Nifty is acting as the immediate resistance, and a sustained breakout above this zone could push the index toward the 24,000 psychological level in the near term, they said. "From a momentum perspective, the RSI remains near the lower band but is gradually recovering from oversold territory, indicating the potential for a continued technical bounce. However, the broader market structure continues to remain cautious unless the index decisively moves above higher resistance levels," said Ponmudi R, CEO of Enrich Money.
Asian rally Most Asian markets including those in Japan and South Korea climbed up to 5 per cent today. Korea's Kospi led the rise, surging 5.04 per cent for the day. Japan's Nikkei also gained 3.15 per cent to 1,687.50. Markets in Hong Kong and mainland China advanced up to 1 per cent.
US-Iran war The US President Donald Trump earlier on Monday said the war with Iran could end "soon," though he suggested the conflict is unlikely to wrap up within the current week. It may have addedto positive investor sentiment. Indian markets have been rising since.
Nomura following its US marketing trip though noted that a majority of its clients were uncertain of how long the conflict would last and that hopes for a quick resolution has faded, possibly owing to the threats by both sides. Select clients, however, expects the conflict could be near its end, considering the decline in the volume of drones and missile attacks from Iran.
"We highlighted that Iran could be taking a more targeted approach now, which could still be enough to restrict shipping flows through the Strait of Hormuz," it said.
Fed policy The gains were seen despite expectations of no more cuts under Powell’s tenure as the Fed chair. Investors were still eagerly commentary, owing to the change in the Fed leadership and easing inflation concerns, Nomura expects two cuts in 2026 -- June and September. In a recent note, the foreign brokerage noted that Powell implied in the December meeting that the pace of monthly purchases would step down to $20-25 billion following the April tax season.
Benchmark stock indices Sensex and Nifty climbed over 1 per cent in Wednesday's trade, tracking a recovery in peer Asian markets, thanks to ease in crude oil prices, ahead of the outcome of two-day Fed policy review where the US policymakers were largely expected to maintain the status quo while emphasising caution regarding inflation risks.
Sensex climbed over 900 points and was later trading at 76,709.39, up 638.55 points or 0.84 per cent. Nifty quoted at 23,766.50, up 181.30 points or 0.77 per cent. This was the third day of consecutive gains for the two barometers, led by buying in select technology and private banking stocks.
ICICI Securities, in a note, said the price-wise median correction during past geopolitical tensions stood at 11 per cent, while the time-wise median was four weeks. It added that buying during such panic phases had generated over 25 per cent returns over the subsequent 3-6 months.
"In current scenario, with past two weeks correction, Nifty has already corrected 9 per cent. Hence, to maintain the same rhythm, Nifty need to stabilise around key support of 22,700 in the coming weeks," the brokerage said.
Oil prices Despite the uncertainty regarding the Iran war, the market has staged a bounce back. One factor that enabled this bounce back is crude remaining around the $102 level and fears of spiking above $120 not materialising, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
"The near-term scenario will be one of markets responding mildly positively to some good news and negatively to bad news," he said.
On Wednesday, Brent oil futures fell 2.2 per cent to $101.13 level. Crude oil prices are up 9.95 per cent in one week and 69 per cent in the past three months.
Technical bounce Analysts said the market was recovering from oversold conditions. The 23,800 level on Nifty is acting as the immediate resistance, and a sustained breakout above this zone could push the index toward the 24,000 psychological level in the near term, they said. "From a momentum perspective, the RSI remains near the lower band but is gradually recovering from oversold territory, indicating the potential for a continued technical bounce. However, the broader market structure continues to remain cautious unless the index decisively moves above higher resistance levels," said Ponmudi R, CEO of Enrich Money.
Asian rally Most Asian markets including those in Japan and South Korea climbed up to 5 per cent today. Korea's Kospi led the rise, surging 5.04 per cent for the day. Japan's Nikkei also gained 3.15 per cent to 1,687.50. Markets in Hong Kong and mainland China advanced up to 1 per cent.
US-Iran war The US President Donald Trump earlier on Monday said the war with Iran could end "soon," though he suggested the conflict is unlikely to wrap up within the current week. It may have addedto positive investor sentiment. Indian markets have been rising since.
Nomura following its US marketing trip though noted that a majority of its clients were uncertain of how long the conflict would last and that hopes for a quick resolution has faded, possibly owing to the threats by both sides. Select clients, however, expects the conflict could be near its end, considering the decline in the volume of drones and missile attacks from Iran.
"We highlighted that Iran could be taking a more targeted approach now, which could still be enough to restrict shipping flows through the Strait of Hormuz," it said.
Fed policy The gains were seen despite expectations of no more cuts under Powell’s tenure as the Fed chair. Investors were still eagerly commentary, owing to the change in the Fed leadership and easing inflation concerns, Nomura expects two cuts in 2026 -- June and September. In a recent note, the foreign brokerage noted that Powell implied in the December meeting that the pace of monthly purchases would step down to $20-25 billion following the April tax season.