Nifty and Sensex today - March 5, 2026

5 Mar 2026 , 04:51 PM

Why Nifty and Sensex are up today?

Indian equity markets staged a strong rebound on Thursday, snapping the recent losing streak as investor sentiment improved. The Nifty 50 Index gained 1.17% to close at 24,765.90, while the BSE SENSEX surged 899 points to settle at 80,015.90, breaking the recent market slump. The rally was supported by easing geopolitical concerns surrounding the Iran crisis, positive global market cues, a recovery in the Indian rupee, and strong buying interest in heavyweight stocks such as Reliance Industries Limited, which helped lift broader market sentiment.

1. Signs of De-escalation in Iran–US Tensions

One of the biggest triggers for the market’s rebound is the emerging geopolitical de-escalation in the Middle East.

Reports suggest that Iran’s Deputy Foreign Minister has indicated that the country may be willing to abandon its nuclear program if certain conditions are met by the United States. This statement has eased global risk concerns that had intensified earlier due to fears of conflict affecting energy supplies and global trade routes.

Markets globally tend to react sharply to geopolitical developments. Even early signals of diplomatic progress can lead to a risk-on sentiment, prompting investors to return to equities after periods of uncertainty.

2. Positive Global Market Cues

Indian markets are also taking support from stronger global equity trends.

When international markets show resilience—especially major US, European, and Asian indices—it often boosts investor confidence in emerging markets like India. Global risk appetite tends to spill over into domestic markets, encouraging foreign institutional investors (FIIs) to increase exposure to equities.

This supportive global backdrop has helped Indian indices stabilize and move higher after the previous session’s volatility.

3. Refinery Stocks Surge on Fuel Supply Tightening

Energy and refinery stocks have been among the biggest gainers today, providing significant support to the indices.

Shares of Reliance Industries Limited rose sharply as improving global refining economics boosted investor sentiment.

The rally in refinery stocks comes after reports that China has asked its refiners to suspend exports of diesel and gasoline, tightening global fuel supply. This shift in export dynamics has improved refining margins globally and strengthened the outlook for refinery operators.

Key factors supporting refinery stocks include:

• Reduced fuel exports from China, tightening global supply

• Higher refining margins, improving profitability outlook

• Geopolitical tensions affecting key oil transit regions, supporting fuel spreads

As a result, shares of Reliance Industries closed 3% higher at ₹1,386.40, compared to the previous close of ₹1,345.00. Since Reliance is one of the heaviest weighted stocks in Indian indices, gains in the stock significantly lifted the broader market.

4. Rupee Recovers After Record Low

Currency movement has also contributed to improved market sentiment.

The Indian Rupee recovered sharply, rising 51 paise to trade at 91.54 against the US dollar in early trade on Thursday. This rebound came after the rupee had weakened significantly in the previous session, falling 56 paise to close at a record low of 92.05 amid rising crude oil prices linked to geopolitical tensions.

During Wednesday’s session, the rupee even briefly touched 92.3025, its lowest level ever.

A strengthening currency often reassures investors because it signals reduced external pressure on the economy, lower import cost risks, and improved macro stability. This helped support buying interest in equities.

5. Institutional Buying in Reliance Industries

Another factor supporting the market rally is institutional buying in index heavyweights.

ICICI Lombard General Insurance Company Limited disclosed that it acquired shares worth ₹400 crore in Reliance Industries on March 4, 2026 as part of its routine investment operations.

Following this transaction, ICICI Lombard’s shareholding in Reliance Industries stands at 0.03%, according to disclosures made under Regulation 30 of SEBI’s Listing Regulations.

Such institutional purchases often act as confidence signals for the broader market, especially when they involve large-cap index leaders.

While these factors have helped lift the markets in the short term, investors and analysts will continue to monitor oil prices, and geopolitical developments, which remain key drivers of market direction in the near term.