Stock market benchmark indices Sensex and Nifty rebounded in early trade on Wednesday (May 6, 2026) following a drop in crude oil prices after U.S. President Donald Trump claimed progress in negotiations with Iran toward an agreement to end the war.
A positive trend in global markets also aided the rally in domestic stocks.
The 30-share BSE Sensex jumped 657.22 points to 77,675.01 in early trade. The 50-share NSE Nifty rallied 218 points to 24,250.85.
From the 30-Sensex firms, InterGlobe Aviation, Mahindra & Mahindra, Trent, Bajaj Finance, Bajaj Finserv and Tech Mahindra were among the major winners.
Larsen & Toubro, Hindustan Unilever, NTPC and Power Grid were the laggards.
U.S. President Donald Trump has suspended “Project Freedom,” to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran toward an agreement to end the war.
In a post on Truth Social on Tuesday (May 6, 2026), Mr. Trump said, “Great progress has been made toward a complete and final agreement with representatives of Iran.”
“Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Mr. Trump said.
Project Freedom was launched on Monday (May 4, 2026) to escort ships, stranded due to the closure of the Strait of Hormuz, out to safety.
Mr. Trump’s statement on Truth Social came hours after U.S. Secretary of State Marco Rubio announced that Operation Epic Fury, launched on February 28, had concluded as its objectives have been achieved.
“Operation Epic Fury is concluded. We achieved the objectives of that operation. We’re not cheering for an additional situation to occur. We would prefer the path of peace. What @POTUS would prefer is a deal… that is, so far, not the route that Iran has chosen,” Mr. Rubio told a press conference at the White House on Tuesday (May 5, 2026).
Brent crude, the global oil benchmark, traded 1.67% lower at $108 per barrel.
“The primary global trigger remains the situation around the Strait of Hormuz. Recent comments from Donald Trump indicating that ‘Project Freedom’ will be paused temporarily — effectively halting plans to escort vessels through the strait amid ongoing negotiations with Iran—offer some near-term respite. However, the broader blockade dynamics remain unresolved, keeping energy markets on edge,” Ponmudi R., CEO of Enrich Money, an online trading and wealth-tech firm, said.
In Asian markets, South Korea’s benchmark Kospi and Hong Kong’s Hang Seng index quoted higher.
U.S. markets ended in positive territory on Tuesday (May 5, 2026).
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,621.58 crore on Tuesday (May 5, 2026), according to exchange data.
On Tuesday (May 5, 2026), the Sensex dropped 251.61 points or 0.33% to settle at 77,017.79. The Nifty edged lower by 86.50 points or 0.36% to end at 24,032.80.
Published – May 06, 2026 10:47 am IST
