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India’s main stock indexes snapped a six-week losing streak on Friday, posting their biggest weekly gain in over five years, as investors took comfort from a fragile U.S.-Iran ceasefire. The Nifty 50 climbed 1.16% to 24,050.6 and the Sensex added 1.2% to 77,550.25, rising nearly 6%, for the week. U.S. and Iran had reached a two-week ceasefire on Wednesday, pushing Brent crude prices down 12% and providing a respite to equity markets globally. However, that ceasefire showed signs of strain on Friday as Washington accused Tehran of breaching promises and Israel struck Lebanon. “A more durable improvement in global risk sentiment would require a cessation of hostilities and the full reopening of the Strait of Hormuz,” said Rita Tahilramani, investment director of Asian equities at Aberdeen Investments. India imports most of its crude and gas, and soaring energy prices since the war have raised concerns over growth, inflation and the impact on corporate earnings. The small-cap and mid-cap indexes rose 7.6% and 7.8%, respectively, this week, with all 16 major sectors logging gains.

Indian shares surged on Wednesday as a plunge in oil prices after the U.S. and Iran agreed to a ceasefire sparked a global rally, while the domestic central bank left rates unchanged as it assessed the war’s impact on the economy. The Nifty 50 rose 3.78% to 23,997.35, logging its best single-session gain in 11 months. The Sensex climbed 3.95% to 77,562.90 - its strongest day in five years. Other Asian markets jumped 5%, while crude prices slipped 14% to $94 a barrel after the announcement of the two-week pause on attacks, with President Donald Trump saying talks were progressing toward a longer-term peace agreement. The development eased fears of further escalation in the war, which had pushed oil prices above $100 a barrel, posing risks to the economy, corporate earnings and financial markets in the world’s third-largest oil importer. “For markets, anxiety has eased for now as this breathing space has reduced immediate pressure and softened the weight of repeated threats,” said Dhananjay Sinha, chief executive and co-head of institutional equities at Systematix Group. “While there are reasons to cheer the de-escalation in the near term, a steady recovery remains conditional on what happens next.” The Reserve Bank of India Governor Sanjay Malhotra said the Iran war has dampened the country’s growth and inflation outlook and that the central bank remained vigilant to act preemptively on liquidity. “The balanced weight on growth and inflation by the RBI hints at a prolonged pause, given the uncertainty over how the energy shock unfolds,” said Ankita Pathak, head of global investments at Ionic Asset.

India’s equity benchmarks closed higher on the first day of the new fiscal year following a tumultuous March, as remarks from the United States that indicated the Iran war could end soon pushed crude oil prices lower and sent shares climbing globally. The Nifty 50 rose 1.56% to 22,679.40 and the BSE Sensex added 1.65% to 73,134.32 on Wednesday. Fourteen of the 16 major sectors rose, with small-caps and mid-caps advancing 3.3% and 2.2%, respectively. Other Asian markets surged 4.6%, the index’s biggest one-day increase since November 2022, and Europe’s STOXX 600 gained 2.1%. Brent crude fell to $103 a barrel, following U.S. President Donald Trump’s talk of a war exit. Investors will now closely watch Trump’s update on Iran in an address on Thursday morning IST. “We think markets are at levels where opportunities may emerge across sectors, though risks remain,” said Prateek Agrawal, managing director and chief executive officer of Motilal Oswal AMC. The Nifty and Sensex lost more than 11% each in March, their biggest monthly loss in six years, with foreign investors offloading a record $12.7 billion.

Stock market crash: HDFC Bank, Reliance Industries, ICICI Bank, Bharti Airtel, Infosys, SBI and Larsen & Toubro (L&T) together form the Magnificent 7 stocks in India, and have lost ₹328,702 crore in just two sessions.