Dalal Street Rallies Ahead, Sensex Over 750 Points Up, Nifty Near 24,600
The uptick comes after a volatile phase in global markets driven by tensions in West Asia, particularly around the Strait of Hormuz and concerns over crude oil supply disruptions.
- Indian equity benchmarks closed higher, driven by falling oil prices.
- Easing crude oil prices reduce inflation and input cost concerns.
- Renewed optimism surrounds potential US-Iran diplomatic engagement.
Indian equity benchmarks ended trading on a positive note, with both indices logging gains during the session. The rally was supported by easing crude oil prices and renewed optimism around possible diplomatic engagement between the United States and Iran.
The BSE Sensex rang the closing bell above 79,250, soaring more than 750 points, while the NSE Nifty50 settled the session near 24,600, jumping a little over 200 points.
The uptick comes after a volatile phase in global markets driven by tensions in West Asia, particularly around the Strait of Hormuz and concerns over crude oil supply disruptions. This marks the third consecutive session of gains, signalling sustained investor confidence amid improving external cues.
Financials, FMCG Lead The Rally
Among Sensex constituents, Trent, Hindustan Unilever, ICICI Bank, Bajaj Finance, HDFC Bank and Axis Bank were among the top gainers, reflecting broad-based buying across sectors.
On the other hand, stocks such as Bharat Electronics, Titan, Reliance Industries and NTPC ended lower, capping the overall upside.
The rally was largely led by financial and consumer-focused stocks, which tend to benefit from stable macroeconomic expectations and improved liquidity outlook.
Oil Prices Cool, Boosting Market Sentiment
A key factor underpinning the market rally was the moderation in global crude oil prices.
Brent crude, the international benchmark, was trading 0.75 per cent lower at $94.76 per barrel. The cooling of oil prices is seen as a positive for India, which is heavily dependent on crude imports.
Lower oil prices help ease inflationary pressures, improve fiscal balances and enhance profitability across sectors such as aviation, paints and logistics.
Ponmudi R, CEO of Enrich Money, noted that markets are currently factoring in the possibility of near-term de-escalation in West Asia. He said energy markets remain in a consolidation phase as traders weigh hopes of easing tensions against lingering uncertainty over ceasefire negotiations.
Geopolitical Hopes Drive Risk Appetite
Investor sentiment has also been supported by expectations of progress in diplomatic talks between Iran and the United States.
Market participants are closely tracking developments related to a possible resolution in the region, particularly the reopening of the Strait of Hormuz, a critical global energy route.
Hariprasad K, Research Analyst and Founder of Livelong Wealth, said the rally is being driven by easing geopolitical concerns, which have improved overall risk appetite.
He added that softer crude prices have helped reduce inflation worries in an oil-importing economy like India, while also improving earnings visibility for corporates.
Global Cues Remain Supportive
Global markets also offered positive cues. Major Asian indices, including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng, ended higher.
European markets were trading in positive territory during the session, while US markets had closed marginally lower on Monday. The broader global trend indicates cautious optimism, with investors responding to both macroeconomic signals and geopolitical developments.
FII Outflows Continue To Weigh
Despite the positive momentum, foreign institutional investors (FIIs) remained net sellers. According to exchange data, FIIs offloaded equities worth Rs 1,059.93 crore on Monday, highlighting continued caution among overseas investors.
Sustained FII outflows could act as a limiting factor for market upside if global uncertainties persist.
Vinod Nair, Head of Research at Geojit Investments Limited, said the market rebound reflects improving sentiment amid easing geopolitical risks and supportive global cues. However, he cautioned that markets remain sensitive to developments in West Asia and movements in crude oil prices.
Previous Session Recap
In the previous session on Monday, the Sensex had ended marginally higher by 26.76 points, or 0.03 per cent, at 78,520.30.
The Nifty had also edged up 11.30 points, or 0.05 per cent, to close at 24,364.85.
Before You Go
BREAKING NOW: Indore fire tragedy as EV short circuit triggers deadly explosions
Top Headlines
