Benchmark equity indices Sensex and Nifty ended nearly 2 per cent higher on Wednesday, starting the new financial year on a firm footing as global markets rallied on hopes of a potential de-escalation in the ongoing West Asia conflict.The 30-share BSE Sensex jumped 1,186.77 points or 1.65 per cent to settle at 73,134.32. During intra-day trade, it surged 2,017.03 points or 2.80 per cent to 73,964.58.The broader NSE Nifty rose 348 points or 1.56 per cent to close at 22,679.40. A decline in crude oil prices also supported investor sentiment.

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“Indian equity markets opened the new financial year on a positive note, with stocks soaring on fresh optimism surrounding a potential de-escalation of the Middle East conflict and easing of energy supply disruptions,” said Ponmudi R, CEO of Enrich Money.He added that US President Donald Trump’s remarks suggesting the US could withdraw from Iran “whether we have a deal or not” within the next two to three weeks provided the trigger for a broad rally in global risk assets.“Indian equity markets opened FY27 on a strong note, driven by improving risk appetite following US President Donald Trump’s remarks hinting at a potential resolution to the West Asia conflict,” said Vinod Nair, Head of Research at Geojit Investments Limited.In the US, markets ended significantly higher on Tuesday, with the Nasdaq Composite surging 3.83 per cent, the S&P 500 rising 2.91 per cent and the Dow Jones Industrial Average gaining 2.49 per cent.Brent crude, the global oil benchmark, declined 0.22 per cent to USD 103.7 per barrel.Stock markets were closed on Tuesday on account of Shri Mahavir Jayanti.Foreign Institutional Investors (FIIs) offloaded equities worth Rs 11,163.06 crore on Monday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 14,894.72 crore, according to exchange data.

Food bills are set to soar as much as 10 per cent this year as a direct consequence of the Iran war, a key industry body has warned.

The Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, has hiked its inflation forecast for the year from 3.2 per cent to between nine and 10 per cent.

During the 2022 cost of living crisis, food inflation rose at a rate of 10.9 per cent, figures from the Food and Drink Federation (FDF) show, while the following year was even worse at 14.6 per cent.

Since then, it had dropped back to 2.7 per cent (2024) and 4.2 per cent (2025), but while this year had originally been forecast to deliver food inflation of 3.2 per cent, the latest assessment is that it will instead see a huge rise in the second half of 2026.

The FDF said the current situation is “unprecedented and hard to predict”, but it’s “clear that food inflation is going to rise in the months ahead”.

How much that adds to the average bill depends on the size and frequency of a consumer’s usual grocery habits, but on average, bills could rise by around £588, according to some estimates.

Consumer rights and review site Which? frequently assesses UK supermarkets for cost, and at the start of 2026, an average basket of 89 shopping products cost £161.56 at Aldi and up to £217.02 at Waitrose.

Assuming food inflation lands at the mid-point of the FDF forecast, 9.5 per cent, and that all products and supermarkets applied that uplift equally, that would move the costs of those shops up to £176.91 and £237.64 respectively.

Research from confused.com suggested the average UK household spent £119 each week on food shopping, which is £6,188 each year; a 9.5 per cent uplift to that equates to an extra £588 annually, or a total of just over £130 per week and £6,775 annually.

Chancellor Rachel Reeves is due to meet with some supermarket chiefs on Wednesday, including Sainsbury’s and Tesco, over discussions to assess the upcoming impact of price rises on the cost of living. The Treasury has described it as a “fact-finding” conversation.

Last month, Asda boss Allan Leighton called on Labour to do more to help businesses after creating “a lot of constraints” for them.

For food manufacturers, there is both a concern now and another yet to come in terms of energy cost rises.

Diesel – used in farm machinery – is up by 80 per cent since the start of the war, while fertiliser costs could increase further, as well as supply being constrained. The FDF also points to lost sales due to cancelled shipments to the Middle East, with UK firms regularly exporting cheese, cereals, chocolate and more to the region.

Dr Liliana Danila, chief economist at The Food and Drink Federation, said: “The food and drink sector is already feeling the force of this geopolitical shock. As one of the UK’s energy-intensive industries, manufacturers are facing mounting energy bills, rising transport and packaging costs and disruption across key supply chains.

“These pressures are hitting simultaneously and are a significant challenge for businesses to absorb.

“The current situation is unprecedented and hard to predict; however, given the scale and speed of these cost increases, and despite companies’ best efforts not to pass price increases on, it’s clear that food inflation is going to rise in the months ahead.”

The FDF says its upgraded inflation figures were based on “assumptions that the Strait of Hormuz opens to cargo traffic within the next two to three weeks”, as has been suggested by Donald Trump this week, and that most commodities, including oil, gas and fertiliser production, return to normal within a year.

In the past few months, the FDF has repeatedly called for the government to offer support to businesses in the sector from rising energy bills in the same way as it does to those in some other manufacturing areas.