Markets open FY27 on a strong note as global cues lift sentiment

Indian equity markets began the new financial year with a sharp rebound, recovering from the weakness seen through much of March. The benchmark BSE Sensex rose nearly 2,000 points in early trade, while the Nifty 50 moved past the 22,800 mark, supported by broad-based buying across sectors.

The upmove followed a shift in global sentiment after signs of easing tensions in the West Asian region. Concerns around the US–Iran conflict had weighed on markets in recent weeks, pushing investors towards caution and triggering a sell-off through the latter half of the previous financial year. With expectations that the situation may stabilise, risk appetite returned to equity markets worldwide.

A key support came from declining crude oil prices, which have a direct bearing on India’s import bill and inflation outlook. Softer oil prices tend to improve macro stability and corporate margins, particularly for sectors such as aviation, paints and logistics, which are sensitive to input costs.

Gains were visible across banking, information technology, metals and real estate stocks, indicating that the rally was not limited to defensives. Market participants attributed the breadth of the recovery to a mix of short covering after March losses and fresh buying triggered by improved global cues.

Despite the strong start, analysts remain cautious about the sustainability of the rally. The sharp fall in the previous month, among the steepest in recent years, suggests that volatility could persist, especially if geopolitical developments turn uncertain again or if commodity prices reverse direction.

For now, the opening session of FY27 reflects a market attempting to reset after a turbulent close to the previous year, with global developments continuing to dictate near-term direction.