Sensex jumps 940 points, Nifty gains 1% as oil eases

Sensex rallies 940 points amid easing oil prices and improving global sentiment following US-Iran peace signals; Nifty ends above 24,300.

Indian equity markets staged a strong rebound on Wednesday, May 6, with benchmark indices closing firmly in the green after a volatile start to the week. The Sensex surged 940 points, while the Nifty 50 climbed 298.15 points, or about 1 per cent, to settle at 24,330.95, buoyed by cooling oil prices and positive global cues.

The rally comes a day after both indices had ended lower, reflecting cautious sentiment earlier in the week.

Oil cools, sentiment lifts

A key trigger for the upmove was a decline in global crude prices. Brent crude eased to around $108 per barrel amid indications of progress in diplomatic talks between the United States and Iran. Market participants tracked developments around the Strait of Hormuz closely, as any easing of tensions tends to reduce concerns over supply disruptions.

According to market watchers, softer oil prices typically support import-heavy economies like India by easing inflationary pressures and improving fiscal outlook.

Global cues supportive

Asian markets advanced sharply on Wednesday, setting the tone for domestic equities. South Korea’s KOSPI jumped nearly 6 per cent, while Japan’s Nikkei and Hong Kong’s Hang Seng also posted gains.

Overnight, US markets had closed higher on May 5, with the Nasdaq rising over 1 per cent. The broader positive sentiment filtered into Indian markets during the session, particularly in the second half of the day.

Sectoral movement mixed

Gains were seen across several sectors, though the rally was not entirely broad-based. Aviation, financials, and select mid-cap stocks led the advance.

Among the top gainers on the Nifty 50 were IndiGo, Shriram Finance, TMPV, Advanced Enzymes, and Bajaj Finserv. These stocks posted gains ranging between 1.4 per cent and 2 per cent.

On the losing side, Larsen & Toubro emerged as the biggest laggard, declining nearly 2 per cent. Other stocks such as HUL, ITC, ONGC, and Reliance Industries also ended marginally lower, indicating some profit-booking in heavyweight counters.

FII selling continues

Despite Wednesday’s rally, foreign institutional investors (FIIs) have remained net sellers in recent sessions. Data shows FIIs sold equities worth ₹8,834 crore over the past seven days.

In contrast, domestic institutional investors (DIIs) continued to provide support, with net buying of ₹10,854 crore during the same period. Over the past month, DIIs have been consistent buyers, helping cushion market volatility.

“Flows remain a key factor in the current market structure,” a market participant said, noting that sustained domestic inflows are offsetting foreign outflows to some extent.

Rupee shows recovery

The Indian rupee also showed signs of recovery, rising 19 paise from its previous all-time low to close at 94.99 against the US dollar. The appreciation followed easing crude prices and improved risk appetite in global markets.

Currency stability is often seen as a supportive factor for equities, particularly for sectors reliant on imports.

Rebound after weak close

Wednesday’s gains come after a weak session on Tuesday, when the Sensex had closed 251 points lower at 77,017. The Nifty had also slipped by 86 points to end near the 24,032 mark.

The sharp turnaround suggests that investor sentiment remains sensitive to global developments, especially geopolitical cues and commodity price movements.

What lies ahead

Market participants are likely to keep a close watch on further developments in US-Iran negotiations, as well as crude oil trends. Any sustained decline in oil prices could provide further upside to domestic equities.

Additionally, institutional flows and global market direction will remain key drivers in the near term. Analysts expect volatility to persist, though the underlying trend may stay positive if external conditions remain favourable.

For now, the Sensex rally of 940 points has provided a breather to investors, even as underlying risks continue to linger.

Iran Pegs War Losses at ₹25 Lakh Crore, Demands Compensation

Iran has demanded compensation for damages estimated at ₹25 lakh crore along with uranium enrichment rights as part of any future deal to end the US-Israel conflict.

War Losses Estimated 

Iranian government spokeswoman Fatemeh Mohajerani stated on Tuesday that US and Israeli attacks have inflicted economic losses of approximately ₹25 lakh crore, with the final tally likely to rise as assessments continue. The figure, roughly equivalent to $270 billion, was first shared in an interview with Russia’s RIA Novosti and later confirmed by Iranian state media.  

Compensation Demand in Focus 

Mohajerani said the Iranian negotiating team has formally raised the compensation issue during recent talks in Islamabad. In a letter to the UN Secretary-General and Security Council, Iran’s ambassador also rejected counter-claims by five Arab nations and accused them of enabling the aggression.  

Uranium Rights Key Condition 

Tehran has made it clear it is ready for peace but only on its terms. These include the right to continue uranium enrichment, complete lifting of all sanctions, and full reparations for war damage. During Saturday’s Islamabad meeting, Iran proposed a five-year halt to its nuclear programme; the US rejected it and insisted on a 20-year suspension.  

Islamabad Talks Yield No Deal 

Despite the deadlock, both sides exchanged proposals aimed at curbing nuclear activities. A source familiar with the discussions told CNN that Trump administration officials are now weighing a second in-person meeting before the ceasefire expires on April 21. Geneva or Islamabad remain possible venues.  

Russia Offers Uranium Storage 

In a parallel development, Kremlin spokesman Dmitry Peskov confirmed Russia remains willing to accept Iran’s enriched uranium stockpile as part of any final agreement. The offer, first made by President Putin, has not yet been accepted.  

Global Energy Impact Widens 

The ongoing US naval blockade in the Strait of Hormuz has already pushed oil prices above $100 a barrel earlier this week, triggering worldwide concerns over supply disruption. Several tankers, including Chinese and Iran-linked vessels, have defied the blockade, but major shipping firms report vessels stuck near the chokepoint.  

Ceasefire Deadline Looms 

Iranian President Masoud Pezeshkian told French President Emmanuel Macron that diplomacy, not military pressure, remains Tehran’s preferred path. As the fragile truce nears its expiry, regional players including China have proposed peace frameworks stressing respect for sovereignty and international law.  

The coming days will decide whether fresh talks materialise and whether Iran’s demand for ₹25 lakh crore in war losses compensation becomes a central sticking point in any lasting settlement.

Pakistan Steps Up as US-Iran War Mediator — Can Islamabad Broker Peace?

As the US-Iran war enters its fourth devastating week, an unlikely diplomatic heavyweight has stepped into the spotlight — Pakistan. With over 2,000 lives lost, millions displaced, and global oil prices threatening to cross $120 per barrel, the window for diplomacy is narrow. And Islamabad may be the only city in the world that both Washington and Tehran trust enough to sit across the table.

Why Pakistan Is the Right Mediator Right Now

Pakistan's emergence as a US-Iran war mediator is no accident. It sits at a rare geopolitical sweet spot — trusted by America, not hostile to Iran, deeply embedded in the Muslim world, and experienced in back-channel diplomacy.

Army Chief Field Marshal Asim Munir spoke directly with President Trump over the weekend, while Prime Minister Shehbaz Sharif held multiple calls with Iranian President Masoud Pezeshkian. Meanwhile, Foreign Minister Ishaq Dar coordinated with counterparts in Turkey and Egypt, quietly assembling the diplomatic groundwork for a potential peace summit.

Pakistan's Foreign Office put it plainly: "If the parties desire, Islamabad is always willing to host talks."

What a Potential Islamabad Summit Could Look Like

Reports from Axios, the Financial Times, and The Times of Israel suggest a high-level in-person meeting could take place in Islamabad soon. The US side may include envoy Steve Witkoff, Jared Kushner, and possibly Vice President JD Vance. Iran could send Parliament Speaker Mohammad Bagher Ghalibaf along with senior officials.

However, the White House has not confirmed any such meeting, stating it will not negotiate through the media. Iran's Foreign Ministry has also officially denied direct talks, dismissing reports as "psychological warfare."

Yet, denials in diplomacy often mean the exact opposite is quietly happening.

Trump's Five-Day Window: A Fragile but Real Opportunity

President Trump announced a temporary pause on planned strikes against Iran's power infrastructure following what he called "very good and productive" conversations. He gave diplomacy a five-day window — short, but significant.

This breathing room is crucial. Every additional day of conflict risks:

• Further closure of the Strait of Hormuz, threatening global energy supply
• Wider regional escalation pulling in Saudi Arabia and Gulf states
• Irreversible humanitarian damage inside Iran

The five-day clock is ticking.

Why This Matters Beyond the Middle East

This war isn't just a regional conflict — it's a global economic shock. Oil near $120 per barrel means higher fuel prices, inflation pressure, and supply chain disruption across Asia, Europe, and beyond. India, heavily dependent on Gulf oil, is watching Islamabad's diplomatic moves very closely.

For everyday people from Mumbai to Manchester, how this diplomatic gamble plays out in the next 72 hours will matter at the fuel pump and the grocery store.

Can Pakistan Actually Deliver?

Pakistan has every strategic incentive to succeed. A prolonged US-Iran war destabilises its western neighbour, raises sectarian tensions domestically, and spikes inflation in an already struggling economy.

But mediation is never simple. Iran is humiliated, the US is emboldened, and neither side wants to appear weak. Pakistan must walk a razor-thin line — pushing both parties toward de-escalation without being seen as taking sides.

The coming days will define whether Islamabad rises to this historic moment — or whether the window closes before anyone walks through it.

Tel Aviv hit, four killed

Iranian ballistic missiles struck multiple locations across central and northern Israel on Tuesday, causing structural damage to at least one building in Tel Aviv and killing four people. Israel's emergency medical service dispatched teams to several impact sites as search and rescue personnel were deployed across the country's south and centre. From Monday night to Tuesday, Iran launched seven separate missile attacks on Israeli territory, with the Israel Defense Forces reporting that several projectiles penetrated multiple layers of air defence.

Iran rules out peace talks

Tehran has firmly shut the door on ceasefire negotiations, stating that current conditions are not conducive to diplomacy for as long as air strikes continue. Iranian officials have maintained that halting all offensive operations remains a non-negotiable precondition before any meaningful dialogue can begin. This position comes despite signals from Washington of openness to talks — signals that Iranian parliamentary speaker Mohammad-Bagher Ghalibaf dismissed as "fake news" designed to manipulate financial and oil markets.

IRGC headquarters struck in Tehran

In a significant escalation, the Israeli Air Force conducted overnight strikes on more than 50 targets inside Iran, including two IRGC intelligence headquarters and one facility belonging to Iran's Intelligence Ministry in Tehran. Ballistic missile storage depots, weapon caches, and air defence systems were also reported among the sites hit. Since the conflict began on 28 February, Israel claims to have struck over 3,000 sites inside Iranian territory.

Gas plant hit, no casualties

A gas pipeline at the Khorramshahr power plant in southwest Iran was targeted in overnight strikes, according to Iranian state media. Separately, the gas administration building and a pressure station on Kaveh Street in Isfahan were partially damaged. Iranian authorities reported no casualties or disruptions to gas supply from any of the facilities. Iran's energy minister Abbas Aliabadi dismissed concerns over power plant vulnerability, stating that any damaged infrastructure can be rebuilt and modernised rapidly.

EU, global economy under strain

European Commission President Ursula von der Leyen, speaking in Canberra, urged both Washington and Tehran to open negotiations and end what she described as the effective closure of the Strait of Hormuz. She warned that Iran's mining of the waterway and attacks on commercial shipping are compounding disruption to the global economy, with Brent crude oil rising back above $100 a barrel on Tuesday. Japan announced plans to begin releasing national oil stockpiles by 26 March, while South Korea — which sources over 70 per cent of its oil from the Middle East — saw its currency hit a 17-year low before a partial recovery.

Trump, Iran give conflicting accounts

US President Donald Trump said discussions with Iran are ongoing and that Tehran "wants peace," while also claiming he delayed strikes on Iranian power plants by five days to allow time for talks. However, a senior Iranian official told international media that points had been received from the US through mediators and are being reviewed, even as the parliamentary speaker publicly denied any negotiations. Israeli officials, meanwhile, assessed that Iran is "unlikely" to agree to US demands, though they noted Trump "appears determined" to reach a deal. The White House declined to confirm media reports of a possible meeting between Vice President JD Vance and Iranian officials in Islamabad this week.

India monitors situation closely

Defence Minister Rajnath Singh convened an urgent meeting Tuesday morning to review the evolving situation in West Asia as the US-Israel-Iran war entered its 25th day with no ceasefire in sight. India, which maintains significant economic and energy interests in the Gulf region, is monitoring the Strait of Hormuz situation closely. As global leaders push for a negotiated resolution, analysts note that the conflict's trajectory will have direct implications for India's energy import costs and the safety of Indian nationals in the region. The coming days, including any potential diplomatic contact between Washington and Tehran, are likely to determine whether this escalation gives way to dialogue or further military exchange.