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The sudden spike came after media report suggested that Iran was ready to abandon its nuclear programme if the United States presented a satisfactory alternative offer.
Reflecting the sudden optimism, the Sensex jumped from 79,369 at 2:35 pm to 80,259 by 2:55 pm, a massive 900-point rally in just 20 minutes.
The benchmark Sensex witnessed a dramatic 900-point surge within just 20 minutes on March 5, after a media report suggested a possible breakthrough in the US-Iran conflict. However, the sharp rally partially fizzled out soon after a clarification emerged.
The sudden spike came after Sky News Arabia reported that Iranian Deputy Foreign Minister Majid Takht-Ravanchi had said Iran was ready to abandon its nuclear programme if the United States presented a satisfactory alternative offer.
The report triggered an immediate risk-on reaction in global markets. Wall Street futures, which were earlier trading in the red, also turned flat after the news.
Reflecting the sudden optimism, the Sensex jumped from 79,369 at 2:35 pm to 80,259 by 2:55 pm, a massive 900-point rally in just 20 minutes.
The spike also coincided with weekly Sensex expiry, which likely amplified volatility as traders rushed to cover positions amid hopes of a geopolitical de-escalation.
However, the rally soon cooled off.
According to Iran’s state-run news agency IRNA, the comments attributed to Takht-Ravanchi were actually related to earlier negotiations with the United States over a nuclear deal and not linked to the ongoing conflict.
IRNA clarified that the remarks referred to past talks held through Oman as a mediator, which eventually failed. The United States later launched ‘Operation Epic Fury’ with Israel, escalating the conflict that has now entered its sixth day.
The clarification dampened the initial optimism in the market.
Following the update, the Sensex slipped nearly 300 points from its intraday high, as traders trimmed aggressive bets placed during the sudden spike.
Despite the volatility, the broader sentiment remained positive. The Sensex finally closed 899.71 points or 1.14% higher at 80,015.90, while the Nifty gained 285.40 points or 1.17% to settle at 24,765.90.
Market breadth also remained strong. About 2,644 shares advanced, 1,430 declined, and 128 remained unchanged on the exchanges.
What Analysts Say
Ajit Mishra, senior vice-president (research) of Religare Broking Ltd, said, “Markets rebounded on Thursday amid choppy trading, ending with gains of over a per cent, supported by improved global cues and buying in select heavyweights. The Nifty opened on a firm note and remained largely range-bound for most of the session; however, a sharp surge in the final hours helped the index retest the hurdle near the 24,800 level and eventually settle at 24,765.”
Investor sentiment improved amid a recovery in global markets and some easing of concerns surrounding geopolitical developments. Strength across Asian markets and buying in large-cap stocks helped lift domestic equities following the sharp correction in recent sessions. However, elevated crude oil prices and lingering geopolitical uncertainties continue to keep participants cautious, he added.
Siddhartha Khemka, head of research (wealth management) at Motilal Oswal Financial Services Ltd, said, “Indian equities snapped their three-day losing streak, witnessing a recovery and trading with a positive bias after recent losses, supported by improving geopolitical cues. Sentiment received a boost after US announced security and insurance guarantees for commercial shipping through the Strait of Hormuz, including the possibility of military escorts for oil tankers to ensure uninterrupted global energy supplies amid tensions with Iran. The move helped ease concerns over potential disruptions to global oil flows and provided some relief to markets.”
Additional support came from reports suggesting that Iran may be exploring possible terms to end the conflict with the United States and Israel, raising hopes of a potential de-escalation, although officials remain cautious and regional tensions persist. The Nifty 50 closed higher at 24,765, with 1.1% of gains, supported by strength in index heavyweights such as metals, oil and gas, and capital goods, he added.
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March 05, 2026, 16:31 IST
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