Indian equity markets staged a powerful comeback this week, snapping a six-week losing streak and logging their biggest weekly gains in five years, driven by easing geopolitical tensions and improving global cues.

The BSE Sensex surged 4,231 points, or 5.77%, to close at 77,550, advancing in four out of five trading sessions despite a sharp 1.2% correction on April 9. Similarly, the NSE Nifty jumped 1,337 points, or 5.88%, reclaiming the 24,000 mark after a month and ending near the week’s high at 24,050.60.

The rally significantly boosted investor wealth, with the total market capitalisation of BSE-listed companies rising by ₹29.4 lakh crore to ₹451.23 lakh crore, up from ₹421.81 lakh crore as of April 2, 2026.

Broad-based rally lifts markets

The rebound was broad-based, with nearly 90% of stocks ending in the green. Broader markets outperformed the benchmarks, as the Nifty Midcap and Nifty Smallcap indices rallied nearly 8% each.

Sectorally, realty and auto stocks stood out, delivering double-digit gains on strong buying interest at lower levels. Banking stocks also joined the rally, with the Nifty Bank index climbing around 8%, mirroring the strength in the broader market.

The sharp recovery was largely fueled by easing geopolitical tensions following a temporary ceasefire between the U.S. and Iran, which improved global risk sentiment. The sentiment was further lifted by decline in crude oil prices, falling below the $100 per barrel mark, easing inflationary concerns for import-dependent economies like India.

Macro stability adds support

On the domestic front, supportive macroeconomic signals also aided sentiment. The RBI kept the repo rate unchanged at 5.25% while maintaining a neutral stance, signalling a balanced approach between growth and inflation.

The central bank raised its FY26 GDP growth forecast to 7.6% and projected FY27 growth at 6.9%. However, inflation projections were revised upward to 4.6% for FY27, amid concerns over energy crisis and weather-related uncertainties.

Economic indicators pointed to some moderation, with the Services PMI easing to 57.5 and the Composite PMI to 57.0 in March. Despite this, global agencies such as the World Bank remain constructive on India’s outlook, supported by strong domestic demand and structural drivers.

Cautious optimism amid global uncertainties

While the week’s rally signals renewed strength, market participants remain cautious about its sustainability. The temporary U.S.-Iran ceasefire has improved sentiment, but uncertainty around its durability continues to linger.

Ajit Mishra, SVP–Research at Religare Broking, said the upcoming week will be crucial, particularly developments around US–Iran negotiations and their impact on crude oil prices.

“Given the improving momentum but persistent global uncertainties, investors should maintain a balanced and selective approach. Portfolio allocation should remain tilted towards fundamentally strong large-cap stocks, while selectively participating in broader market opportunities,” he said.

He recommended investors to remain agile, avoid excessive leverage, and focus on disciplined risk management. “With volatility expected to remain elevated, adopting a hedged strategy and focusing on stock-specific opportunities will be crucial.”

Ponmudi R, CEO, noted that overall sentiment remains “balanced but cautious,” with global cues, crude oil movements, and foreign investor activity shaping the near-term outlook. “Downside appears relatively contained, but upside momentum remains constrained, pointing to a recovery that is still tentative and low in conviction,” he said.

He added that markets are likely to remain volatile and news-driven, with geopolitical developments expected to have a direct bearing on risk appetite. Any escalation in tensions or a spike in crude oil prices could reintroduce downside risks, while sustained moderation in oil prices may support further gains.

Technical levels to watch

From a technical perspective, analysts believe the market has entered a critical zone. Angel One said that the technical structure has turned extremely bullish with the benchmark index moving above the 20-DEMA after a prolonged corrective phase.

“The market structure reflects a constructive and bullish outlook, where interim declines are likely to present accumulation opportunities in the indices. However, participants are advised to adopt a stock-specific approach while remaining cautious and attentive to evolving global developments that may influence market sentiment,” the brokerage said in a note.

According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart, the Nifty has managed to hold above the 24,000 mark after a sharp recovery.

Immediate support is seen at 23,682, followed by 23,470 and 23,330 levels. On the upside, resistance is placed at 24,500 and 25,000.

For Bank Nifty, 54,500 is the key near-term support level, with further supports at 54,150 and 53,600. Resistance levels are pegged at 57,000 and 58,000.

Key triggers for the week ahead

Markets will remain closed on Tuesday, April 14, on account of Dr. B.R. Ambedkar Jayanti. In the truncated trading week, the Q4 earnings season will take centre stage, with market heavyweights set to announce results. Several companies including Wipro, HDFC Bank, and ICICI Bank are set to release their March quarter results this week.

Additionally, macroeconomic data, including CPI inflation (April 13), WPI inflation, unemployment rate, and trade balance figures, will be closely monitored.

Global cues, particularly crude oil prices, which remain elevated amid disruptions in the Strait of Hormuz, and geopolitical developments, will continue to dictate market direction.