Sensex, Nifty bounce back as retreating crude oil prices buoy global sentiment

Indian equity markets rebounded sharply on Tuesday as easing geopolitical concerns and falling oil prices helped restore investor confidence after recent volatility. The BSE Sensex surged 639.82 points to close at 78,205.98 , while the NSE Nifty advanced 233.55 points to settle at 24,261.60 , recovering part of the steep losses recorded in the previous two sessions. The rebound came as global investors reacted positively to signs that tensions in West Asia may ease, particularly after Donald Trump suggested that the ongoing Iran conflict could end soon. A sharp correction in Brent crude prices, which had earlier surged close to USD 120 per barrel before falling to around USD 90 , also helped improve market sentiment.

The recovery in Dalal Street mirrored a broader global market rebound. Asian markets rallied strongly, with South Korea’s Kospi jumping more than five per cent and Japan’s Nikkei 225 rising nearly three per cent after stronger-than-expected economic data supported investor optimism. Markets in Hong Kong and Shanghai also closed higher, while major European indices including Germany’s DAX , France’s CAC 40 , and Britain’s FTSE 100 gained sharply in early trade. Meanwhile, US stock futures indicated gains as investors welcomed signs that geopolitical tensions may not escalate further.

Market volatility in recent days has been closely tied to fluctuations in crude oil prices. Concerns had intensified earlier after fears that disruptions in the Strait of Hormuz a critical route through which nearly one-fifth of global oil supply passes could severely impact energy markets. For India, which imports nearly 90 per cent of its crude oil , sustained high oil prices could widen the current account deficit , push up inflation, and weigh on economic growth. The sharp fall in crude prices on Tuesday therefore provided relief to investors and policymakers alike.

The rally in Indian markets was broad-based, with stocks such as Mahindra & Mahindra , InterGlobe Aviation , Maruti Suzuki , ICICI Bank , Asian Paints , and UltraTech Cement emerging as major gainers. Sectoral indices also recorded strong gains, with auto , consumer durables , services , and PSU banks leading the rally, while mid-cap and small-cap stocks outperformed the benchmark indices. Analysts believe the recovery reflects improving risk sentiment, although markets may remain sensitive to developments in the Middle East and movements in global crude oil prices in the coming weeks.