Indian benchmark indices rebounded sharply on Tuesday, with the BSE Sensex jumping nearly 800 points and the NSE Nifty climbing above the 24,200 level as improved global cues and easing geopolitical tensions boosted investor confidence.
The rally followed a period of volatility in global markets triggered by rising tensions in the Middle East. Sentiment improved after remarks from former US President Donald Trump, who suggested that the conflict involving Iran could end soon. The comments raised hopes of a possible de-escalation in the region, easing fears of prolonged disruptions to global energy supplies.
Falling crude oil prices also supported the market rally. Brent crude slipped below the $90 per barrel mark after surging in recent sessions due to geopolitical concerns. As India imports a large share of its crude oil needs, lower oil prices are seen as positive for the domestic economy since they help reduce inflationary pressure and lower import costs.
Sector-wise, buying interest was visible across several segments including financials, consumption, pharmaceuticals and mid-cap stocks. The broader market also saw strong participation as investors returned to equities amid improving risk appetite.
Among individual stocks, aviation major InterGlobe Aviation, which operates the airline brand IndiGo, emerged as one of the top gainers. Airline stocks benefited from the decline in crude prices, as aviation turbine fuel accounts for a major portion of operating costs. Other major gainers included Asian Paints, Larsen & Toubro, UltraTech Cement and Tata Steel, which advanced during the session.
On the losing side, Reliance Industries was among the biggest laggards on the Sensex, slipping amid profit booking. A few other stocks such as Bharti Airtel and Axis Bank also witnessed mild declines despite the overall positive trend in the market.
Meanwhile, the Indian rupee strengthened slightly against the US dollar, further supporting market sentiment. Global cues also remained favourable, with several Asian markets trading higher as investors reacted positively to falling oil prices and the easing geopolitical outlook.
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