Indian Markets Gain As US-Iran Tensions Stabilize

The Indian equity markets sustained a four-week winning streak, with the Nifty 50 closing at 24,270.80 and the Sensex at 77,763.91 as of July 5, 2026. The surge follows robust domestic macroeconomic data, including a 13.9% year-on-year rise in GST collections to ₹1.95 lakh crore and positive industrial output figures, pushing India's market capitalization back to the fifth global rank at $5.05 trillion.

Energy markets have stabilized following the cessation of hostilities between the US and Iran, marked by the lifting of the blockade in the Strait of Hormuz. Consequently, India has withdrawn emergency natural gas regulations implemented earlier in March, which had prioritized essential sectors during the supply disruption. Crude oil prices are currently hovering between $68 and $69 per barrel, easing inflationary concerns.

Investors are now turning their attention to the Q1 FY27 earnings season, starting with TCS on July 9. While the US economy shows structural strengths, analysts at Deutsche Bank warn that federal debt surpassing 100% of GDP and rising interest costs present long-term risks to the global reserve currency status of the US dollar. Domestically, the Nifty IT index marked a significant 4.64% weekly gain, signaling strong momentum as participants navigate the upcoming corporate results.