SENSEX surges over 1,450 points from day's low, NIFTY50 reclaims 22,900; here are key reasons behind recovery

The Indian equity benchmarks staged a strong recovery in afternoon deals on Monday, April 6, on hopes of a cease fire in Middle East.

A report suggested that Iran and the United States have received a plan to end hostilities that could come into effect on Monday and ‌reopen the Strait of Hormuz, news agency Reuters reported citing a source aware of the matter. The BSE benchmark SENSEX surged as much as 1,479 points from the day's lowest level and NIFTY50 index reclaimed its important psychological level of 22,950.

As of 3:02 pm, the SENSEX was up 764 points at 74,083 and NIFTY50 index advanced 236 points to 22,966.

The SENSEX and NIFTY staged a gap down opening after tension in Middle East escalated. In a tough message to Iran, US President Donald Trump, in a Truth Social post, said that Iran will be "living in a hell" if the Strait of Hormuz is not opened. He said the deadline is "Tuesday, 8:00 P.M. Eastern Time".

Meanwhile, a framework to end hostilities has been put together by Pakistan and exchanged with Iran and the US overnight outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement, the Reuters report added.

On Dalal Street, buying was visible across sectors as all the 15 major sector gauges, barring the measure of oil& gas shares, were trading higher led by the NIFTY Consumer Durables index's 2.54% gain. NIFTY Bank, Financial Services, Private Bank, PSU Bank, Metal and Auto indices also rose between 1% and 2.4%.

Broader markets were also witnessing buying interest as NIFTY Midcap 100 index gained 1.52% and NIFTY Smallcap 100 index advanced 1.3%.

Trent was top gainer in the NIFTY50 index, the stock surged 8% to ₹3,836 after the company said that its revenue in the last quarter of previous financial year (Q4FY26) rose 20% annually to ₹4,937 crore from ₹4,106 crore in the same period last year. For financial year 2025-26, Trent's revenue jumped 18% annually to ₹19,701 crore as against ₹16,668 crore in the previous financial year.

Trent said that it opened a total of 22 Westside stores in March quarter and 52 stores during FY26. The company added that it opened a total of 108 Zudio stores in last quarter of FY26 and a total of 198 stores in FY26.

Shriram Finance, Axis Bank, Adani Enterprises, Titan, SBI Life, Ultratech Cement and Larsen & Toubro also rose between 3% and 4.35%.

On the flipside, Reliance Industries, ONGC, Max Healthcare, Eicher Motors and JSW Steel were notable laggards in the NIFTY50 index.

The overall market breadth was extremely positive as 2,524 shares were advancing while 719 were declining on the NSE.