MUMBAI, MARCH 24, 2026 — Indian benchmark indices roared back to life on Tuesday morning, staging a massive relief rally following President Trump’s surprise decision to pause military strikes against Iran. Despite the surge, experts warn that “Strait of Hormuz volatility” remains a dominant force as conflicting reports from Washington and Tehran keep investors on edge.
Opening Bell: A Sea of Green
The domestic markets opened with significant gains, clawing back recent losses fueled by Middle East tensions:
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BSE Sensex: Jumped 1,516.08 points (2.09%) to open at 74,212.47.
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Nifty 50: Climbed 365.80 points (1.62%) to start the session at 22,878.45.
The rally was broad-based, with every sectoral index on the NSE opening in positive territory. PSU Banks and Auto led the charge, gaining 2.40% and 2% respectively, while Metal and IT stocks also saw robust buying interest.
“Not Out of the Woods”: Expert Caution
While the numbers look stellar, market veterans are urging calm. Banking and market expert Ajay Bagga noted that the recovery is being driven by social media-induced volatility rather than a fundamental resolution.
“The world is still not out of the Strait of Hormuz. We are seeing massive volatility based on social media posts that are promptly denied by adversaries… all the while someone is making huge profits by taking positions ahead of these announcements,” Bagga told ANI.
The disconnect remains stark: while Trump claims “productive conversations” are happening in secret, Tehran continues to dismiss the reports of negotiations as “fake news.”
Commodities and Global Cues
The “Trump Truce” has sent mixed signals through the commodities market:
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Oil: Brent crude remains elevated at $104 per barrel, having bounced back after a brief dip below $99 on Monday.
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Gold & Silver: The safe-haven metal continued its 25-day losing streak, with 24-karat gold priced at ₹1,37,370 per 10 grams, while silver fell sharply by over 3%.
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Global Markets: Asian markets, including the Nikkei and KOSPI, followed Wall Street’s overnight lead to open higher, though some gains began to trim as the morning progressed.
The Five-Day Window
The current market optimism hinges entirely on the five-day postponement of US strikes on Iran’s energy grid. With the Strait of Hormuz—the world’s most critical energy chokepoint—still effectively closed, the underlying threat to global supply chains persists. Investors are now laser-focused on whether this diplomatic “breather” translates into a functional reopening of the waterway or simply precedes a fresh round of escalation.
