Sensex Surges 445 Points, Nifty Tops 24,150 as Crude Oil Prices Plummet

Indian Equity Benchmarks Sensex and Nifty Extend Recovery

On Tuesday, Sensex and Nifty opened higher, extending the recovery from Monday's late rebound, driven by firm global cues. A sharp overnight plunge in crude oil prices eased inflation concerns and lifted global risk sentiment. At 09:30 am, Sensex was up 445 points or 0.6 percent at 78,011, while Nifty gained 135 points to 24,163. Market breadth remained firmly positive, with 2,399 shares advancing against 586 declines.

The rebound in Indian markets comes after a volatile start to the week when markets plunged sharply amid a surge in oil prices triggered by escalating tensions in the Middle East. Sensex and Nifty had fallen more than 3 percent intraday on Monday before trimming losses by the close.

Investor sentiment improved after crude prices witnessed an extraordinary reversal, dropping sharply to around $89 per barrel after briefly soaring close to $120. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the sharp movement in Brent crude prices highlighted the extreme volatility caused by uncertainty around the West Asian conflict.

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Historical experience suggests that geopolitical conflicts typically have only a short-term impact on markets, and investors should remain invested while using corrections as opportunities to accumulate fundamentally strong stocks.

Nifty stocks that led the gains included:

• InterGlobe Aviation: up 3.6 percent
• Shriram Finance: up 3.5 percent
• UltraTech Cement, Asian Paints, Adani Ports, and Mahindra & Mahindra: up between 2 percent and 2.3 percent
• Titan Company, Dr Reddy’s Laboratories, Eicher Motors, and Tata Steel: up between 1.4 percent and 1.9 percent

On the downside, a handful of stocks traded lower, including ONGC, Reliance Industries, Infosys, and Tech Mahindra, though losses remained relatively modest.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Sectorally, most indices traded in positive territory, with:

• Nifty Consumer Durables index: up about 2 percent
• Nifty Auto index: up around 1.4 percent
• Nifty Pharma index: gained nearly 1.5 percent
• Nifty Bank index: advanced about 1 percent
• Nifty PSU Bank index: rose around 1.3 percent

Market volatility cooled significantly, with the India VIX dropping nearly 13 percent to 20.34, reflecting improving risk appetite.

Technical analysts said the market may attempt a short-term rebound after entering oversold territory during the recent correction. Anand James, Chief Market Strategist at Geojit Investments, said the Nifty's ability to hold above the 24,000 mark has revived hopes of further upside in the near term.

However, analysts also caution that markets may remain volatile in the near term due to crude oil price volatility and geopolitical developments in the Middle East.