Indian equity benchmarks opened sharply higher on March 24, tracking a rebound in global markets and easing crude oil prices amid signs of potential de-escalation in the Middle East conflict.

The BSE Sensex jumped as much as 1,516 points, or 2%, to 74,212 in early trade, while the Nifty 50 rose 366 points, or 1.6%, to 22,878 at the opening bell. The rally follows a sharp 2.5% correction in the previous session, indicating a swift risk-on reversal.

Broader markets mirrored the uptrend, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 1.6% and 1.45%, respectively.

The volatility index, India VIX, cooled over 5% to 25.35, though it remained elevated above the 20 level.

The rally was driven by a sharp cooling in crude prices, with Brent falling from $113 to below $100, easing inflation concerns and lifting sentiment across import-dependent economies like India.

Buying seen across sectors

Buying was broad-based, led by cyclicals and rate-sensitive sectors. Asian Paints topped the gainers, rising 3.14%, followed by InterGlobe Aviation (IndiGo) up 2.68%, and Titan Company gaining 2.50%.

Infrastructure and capital goods stocks were also in demand, with Larsen & Toubro advancing 2.06%, while Bharat Electronics and Mahindra & Mahindra rose up to 1.9%.

Metal and logistics names tracked the global risk-on sentiment, with Tata Steel and Adani Ports and Special Economic Zone gaining around 1.6% each.

Financials remained firmly bid, with State Bank of India, HDFC Bank, and ICICI Bank rising between 1–1.5%, signalling continued institutional interest.

In the IT pack, Tech Mahindra, Tata Consultancy Services, and HCLTech edged higher, while Infosys was the only notable laggard, slipping marginally.

Among defensives, Reliance Industries and ITC posted modest gains, while Power Grid Corporation of India declined 1.26%, emerging as the top loser.

All sectoral indices traded in the green, underscoring broad-based participation. The NIFTY PSU Bank index led gains, rising 1.88%, followed by the NIFTY Auto (1.79%) and NIFTY Metal (1.65%).

Financial indices also advanced, with the NIFTY Financial Services 25/50 up 1.52% and the NIFTY Private Bank gaining 1.44%.

Consumption-linked sectors remained firm, with the NIFTY Consumer Durables rising 1.56% and the NIFTY FMCG adding 0.93%.

Defensive pockets such as the NIFTY Pharma (1.01%) and NIFTY Healthcare Index (1.11%) also traded higher, though underperforming cyclicals. The NIFTY IT index lagged, rising just 0.42%.

Rebound driven by cooling crude prices

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets are reacting sharply to evolving geopolitical signals. “Politics is turning out to be as volatile as the market… near-term volatility will persist with every development on the war front,” he noted, adding that sustained FII selling and rupee weakness remain key drags.

Hariprasad K of Livelong Wealth said the rebound is largely driven by improving global sentiment and a pullback in crude prices, though “underlying geopolitical uncertainty has not fully dissipated.”

According to Emkay Global, the easing crude overhang and potential reversal in foreign outflows could position India as one of the more attractive markets in the region, with sectors like autos, NBFCs, and private banks likely to benefit.

Ponmudi R, CEO of Enrich Money, added that while the near-term outlook has turned constructive, “the environment remains highly event-driven and fragile,” with crude, currency, and FII flows acting as key triggers.

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