Indian equity markets staged a strong rebound on Tuesday morning, with benchmark indices surging after easing geopolitical concerns and a sharp drop in crude oil prices lifted investor sentiment.
The BSE Sensex climbed more than 570 points in early trade, while the Nifty 50 gained over 170 points to cross the 24,200 mark. The rally comes a day after markets witnessed a sharp sell-off amid fears of escalating tensions in West Asia.
At around 9:17 am, the Sensex was up 578.07 points, or 0.75%, at 78,144.23 after opening higher at 78,375.73. The Nifty 50 rose 174.15 points, or 0.72%, to 24,202.20.
The recovery follows Monday’s steep losses, when the Sensex plunged 1,352.74 points to close at 77,566.16, while the Nifty dropped 422.40 points to 24,028.05 as geopolitical uncertainty weighed on global markets.
A major trigger for Tuesday’s rebound was the sharp fall in global oil prices after Donald Trump signalled that the conflict in West Asia could end soon.
Brent crude futures fell more than 5% to about $93.86 per barrel, while West Texas Intermediate crude slipped to around $89.80 per barrel. On India’s Multi Commodity Exchange of India, March crude futures dropped about 6% to ₹8,261.
Lower oil prices tend to support the Indian economy by easing inflationary pressures and reducing import costs, which in turn improves investor sentiment in domestic equities.
Asian markets also rebounded sharply, helping Indian indices open with strong gains. Investor optimism was further supported by signals that geopolitical tensions may not escalate further, prompting traders to return to risk assets.
According to Satish Kumar, MD and Head of InCred Research Services, market corrections are a natural part of the cycle and the downside risk may already be largely priced in.
He noted that crude oil at around $115 per barrel earlier was unlikely to sustain for long and that markets should stabilise once energy prices cool. Kumar also said much of the geopolitical premium has already been priced into commodities and risk assets, and if the conflict does not escalate, investors are likely to refocus on corporate earnings and economic fundamentals.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
