Market rebounds as crude eases to $92; Sensex rises 640 pts, Nifty gains 1%

Indian equities rebounded on Tuesday, recovering part of the previous session’s losses as softer crude oil prices and value buying supported the market. The BSE Sensex ended 639.82 points, or 0.82%, higher at 78,205.98, while the Nifty50 settled 233.5 points, or 0.97%, up at 24,261.60.

The broader markets outperformed the benchmark indices, with the Nifty MidCap and the Nifty SmallCap indices rallying 1.62% and 2.12%, respectively.

Market sentiment improved after global crude prices fell sharply to around $92 per barrel, retreating from Monday’s highs of nearly $120, after Donald Trump indicated that the conflict in West Asia could end “very soon”. Investor confidence was further boosted after finance ministers from the Group of Seven (G7) said they were prepared to release oil from strategic reserves if needed to stabilise markets.

Volatility eased sharply during the session, with the India VIX falling nearly 19% to 18.91, signalling improved investor confidence after the previous day’s spike.

M&M, IndiGo, Maruti, ICICI Bank lead Sensex pack

On the BSE Sensex pack, 24 out of 30 stocks ended in positive territory, with Mahindra & Mahindra , IndiGo , Maruti Suzuki India , ICICI Bank , and Asian Paints emerging as the top gainers, rising between 2.7% and 3.7%. Other notable gainers included Axis Bank, UltraTech Cement, Tata Steel, and Kotak Mahindra Bank.

However, the upside was capped by losses in heavyweight stocks such as Reliance Industries , Infosys , Tata Consultancy Services , Bharti Airtel, and Hindustan Unilever . Eternal was the top laggard with a 1.5% loss, while RIL and Airtel shares settled down by over 1% each.

On the sectoral front, Nifty Auto, Consumer Durables, and Financial Services (ex-bank) were among the top performers, while Nifty IT and Oil & Gas underperformed.

The Nifty Auto surged 3.1%, leading the gains, followed by PSU banks, consumer durables, and financial services, while the Nifty IT and Nifty Oil & Gas indices ended marginally lower.

Ease in crude prices boosts sentiment

According to Ajit Mishra, SVP – Research at Religare Broking, the recovery was driven by improved global sentiment and a cooling in crude prices.

“Investor sentiment improved slightly as global markets stabilised and crude oil prices cooled from their recent spike, which had earlier triggered concerns over inflation and economic growth. Expectations of easing geopolitical tensions in the Middle East and supportive cues from global equities also aided the recovery in domestic markets.”

Echoing the same view, Vinod Nair, Head of Research at Geojit Investments, said Dalal Street mirrored the improvement in global sentiment after crude prices dropped sharply following comments from Donald Trump, suggesting the conflict in West Asia could end soon.

However, Nair cautioned that volatility remains elevated, with the India VIX still at relatively high levels, signalling lingering uncertainty in the market. He added that broader markets outperformed the benchmark indices, with most sectors trading in positive territory. Fertiliser stocks advanced after the government prioritised gas allocation to the sector, while oil and gas stocks witnessed some correction following curbs on gas supply.

Technical levels to watch

From a technical perspective, analysts believe key resistance levels remain in place for the benchmark indices. Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the 24,370–24,400 zone will act as an important hurdle for the Nifty 50, and a sustained move above 24,400 could extend the pullback rally towards 24,650. On the downside, the 24,160–24,130 zone is likely to provide immediate support.

Shah added that the Nifty Bank also witnessed a pullback rally and outperformed the frontline indices during the session. However, the banking index continues to trade below its key moving averages. He said the 200-day EMA zone of 57,400–57,500 will act as a critical resistance level, with a sustained move above 57,500 potentially pushing the index towards 58,100, while the 56,600–56,500 zone is expected to provide near-term support.

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