Share Markets See Some Relief, Sensex Over 700 Points Up, Nifty Above 24,200 In Opening Bell

The rebound comes after domestic equities ended Monday with significant losses amid rising geopolitical tensions, surging crude oil prices and continued foreign investor selling.

Indian equity markets are poised for a rebound session on Tuesday after a steep sell-off in the previous session. Both benchmark indices were trading higher in the pre-open session despite lingering concerns over the West Asia conflict and volatile crude oil prices.

The BSE Sensex opened the trading session near 78,300, rallying more than 700 points, while the NSE Nifty50 rang the opening bell around 24,200, climbing close to 200 points, as of 9:15 AM.

The rebound comes after domestic equities ended Monday with significant losses amid rising geopolitical tensions, surging crude oil prices and continued foreign investor selling.

At around 9:06 AM on Tuesday, the Sensex was trading at 78,341.89 in the pre-open session, up 775.73 points or 1.00 per cent. The Nifty was quoted at 24,243.50, gaining 215.45 points or 0.90 per cent, indicating a potential recovery after Monday’s sharp decline.

On the 30-share Sensex, IndiGo, Asian Paints, UltraTech Cement, M&M, and Titan emerged among the gainers. Meanwhile, the laggards included Infosys, Reliance, Tech M, HCL Tech, and TCS.

In the broader markets, the Nifty Smallcap50 climbed more than 1 per cent, followed by the Nifty Smallcap100 rising 0.98 per cent. Sectorally, the Consumer Durables and Midsmall Healthcare indices soared 1.32 per cent and 1.20 per cent respectively.

Crude Oil Retreat Boosts Risk Appetite

A key factor behind the rebound was the sharp decline in global crude oil prices. Brent crude, the global oil benchmark, dropped 5.18 per cent to $93.83 per barrel, easing concerns over inflation and economic pressures on oil-importing nations such as India.

Market participants said the drop in oil prices helped revive risk appetite across global markets, which had been under pressure after crude briefly surged to near $120 a barrel during the peak of geopolitical tensions.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the extreme volatility in oil prices reflects the uncertainty surrounding the West Asia conflict and its implications for global energy supplies.

“The panic reaction in crude prices which took the Brent crude to near $120 yesterday has seen a reversal this morning plunging Brent crude to $89. This kind of extreme swing of near $30 in one day is reflective of the huge uncertainty surrounding the impact of the West Asian conflict on global crude supplies. During a war, uncertainty reigns supreme and this is what we are witnessing now,” Vijayakumar said.

Global Markets Turn Supportive

Improved global sentiment also supported domestic equities. Comments from former US President Donald Trump suggesting that the US-Israel conflict with Iran could conclude soon helped calm investor nerves, contributing to the fall in crude oil prices and the US dollar.

“Comments from Donald Trump suggesting that the US-Israel conflict with Iran could conclude soon have triggered a decline in crude oil prices and the US dollar, helping restore risk appetite across global markets. US equities closed the previous session in positive territory, while Asian markets are showing signs of recovery following the drop in oil prices, indicating a modest improvement in global sentiment,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.

Wall Street also ended higher overnight, with the Dow Jones Industrial Average rising nearly 200 points as crude oil prices retreated sharply, said Hariprasad K, Research Analyst and Founder of Livelong Wealth.

Across Asia, markets rebounded strongly. South Korea’s Kospi climbed nearly 5 per cent, while Japan’s Nikkei 225 jumped about 2.5 per cent. China’s Shanghai SSE Composite and Hong Kong’s Hang Seng were also trading in positive territory.

Institutional Flows In Focus

Foreign Institutional Investors (FIIs) continued to remain net sellers in the previous session, offloading equities worth Rs 6,345.57 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, offered support to the market, buying shares worth Rs 9,013.80 crore.

Markets Slide Sharply Amid Oil Shock

Benchmark indices Sensex and Nifty witnessed heavy selling pressure on Monday as investors reacted to the worsening situation in West Asia and the sharp spike in global crude oil prices.

The Sensex fell 1,352.74 points, or 1.71 per cent, to settle at 77,566.16, marking its second consecutive session of decline. During intraday trade, the index had plunged as much as 2,494.35 points, or 3.16 per cent, to hit a low of 76,424.55.

The Nifty also ended lower, dropping 422.40 points, or 1.73 per cent, to close at 24,028.05. At one point during the session, the index had slipped 752.65 points, or 3.07 per cent, to 23,697.80.

The sharp decline in equities coincided with escalating geopolitical tensions in West Asia, which pushed crude oil prices sharply higher and triggered concerns about inflation and economic stability.

Analysts warned that higher oil prices pose a major risk for oil-importing economies like India. A sustained rise in crude prices can widen the current account deficit, fuel inflation and weaken the domestic currency.