Indian Stock Market Rally Continues Amid Easing Geopolitical Tensions and Positive Assembly Election Results

Stock market rally:Indian benchmark indices edged higher on Monday, May 4, 2026, as geopolitical tensions showed signs of easing andassembly election results in West Bengaladded to positive sentiment.TheBSE Sensexadvanced 997.25 points or 1.3 per cent to touch an intra-day high of 77,910.75, while theNSE Nifty50gained 292.65 points or 1.2 per cent, logging an intra-day high of 24,290.2.At 9:56 AM, Hindustan Unilever, Maruti Suzuki, Adani Ports, and L&T were among thetop gainers on BSE, while Kotak Mahindra Bank, TCS, Eternal, and Bharti Airtel were thetop losers. In the broader market,Nifty Midcap 100gained 0.99 per cent and theNifty Smallcap indexrose 0.92 per cent.BarringNifty Media, which slipped 0.25 per cent, all sectoral indices traded in the green.India VIX, which reflects near-term volatility expectations, eased 2.32 per cent to 18.03.CATCH STOCK MARKET UPDATES LIVEWhy are Stock Markets rising today?Geopolitical tensions ease, crude slipsMarkets drew relief after US President Donald Trump said America would work to free ships stranded in the Strait of Hormuz. Brent crude futures fell 64 cents or 0.59 per cent to $107.53 a barrel, after settling $2.23 lower on Friday."The real market trend will be guided by crude oil prices, which in turn will be decided by news and happenings in West Asia. Trump's declaration that the US will help guide ships through the Strait of Hormuz has brought Brent crude down to around $108 levels. There is also a latest proposal from Iran to the US delivered through Pakistan," said V.K. Vijayakumar, chief investment strategist, Geojit Investments.Also ReadStock Market LIVE: Sensex drops 650 pts from day's high; Nifty below 24,100; Airtel, TCS top draggerBombay Dyeing zooms 18% on launching ultra-luxury THREE ICC projectEquitas SFB zooms 11% to hit new 52-week high on multi-fold jump in Q4 PATDr Lal PathLabs hits 20% upper band on strong Q4; brokerages stay positiveOnEMI Technology IPO Day 2 update: Subscription lags at 34%, GMP 2%Assembly election resultsOngoing assembly elections across West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry also factored into market sentiment, with analysts particularly watching West Bengal closely."Assembly elections can create some kind of impact in the medium to short term. BJP leading in West Bengal would be a positive factor for markets in the near to medium term," said Kranti Bathini, equity strategist, WealthMills Securities.In West Bengal, the central contest is between the ruling Trinamool Congress and the BJP. Chief Minister Mamata Banerjee is seeking a fourth consecutive term, while the BJP is targeting its first-ever victory in the state. The Congress and CPI(M) are also attempting to revive their presence after significant losses in the previous election, with parties including AIMIM and AJUP contesting selected seats.Global markets surgeAsian markets rallied broadly following Trump's Strait of Hormuz statement. South Korean stocks hit a fresh record high, while Hong Kong's Hang Seng gained 1.71 per cent. Markets in Japan and China remained closed for public holidays.Technical view"Though we are now in a better position to pursue a 25,000-25,600 view, volatility and wider trading ranges may continue, with VIX staying above 18. We will start the week with 24,050-24,350 as the breakout range," said Anand James, chief market strategist, Geojit Investments.Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.