Sensex settles nearly 650 pts higher, Nifty ends above 24,250: Easing crude prices among key factors behind market rise

Stock market today news: Sensex, Nifty rise in trade.

• Sensex and Nifty rebounded after two days of steep losses.
• Decline in crude oil prices and global recovery boosted markets.
• India VIX fell 12%, indicating reduced investor worries.

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The equity benchmark indices Sensex and Nifty rebounded by nearly 1 percent on Tuesday after two sessions of steep losses, tracking a decline in crude oil prices and recovery in global markets amid hopes that the conflict in West Asia could ease soon.

The Sensex jumped 639.82 points or 0.82 percent to settle at 78,205.98. During the day, it surged 960.09 points or 1.23 percent to 78,526.25. The Nifty climbed 233.55 points or 0.97 percent to end at 24,261.60.

Shriram Finance, InterGlobe Aviation and Dr. Reddy’s Laboratories were among the top gainers in the Nifty50 pack, rising up to 5 percent. Oil and Natural Gas Corporation and Infosys were among the laggards, slipping up to 2 percent. Market breadth remained positive, with about 2,550 stocks advancing, 832 declining and 142 remaining unchanged.

Fourteen of the 16 major sectoral indices traded in the green, with IT and oil and gas being the only sectors in the red. The broader Nifty Midcap100 and Nifty Smallcap100 indices rose up to 1.5 percent.

The benchmarks had logged their sharpest fall in a month on Monday. The volatility index had surged to a 21-month high after crude oil prices crossed USD 100 per barrel amid concerns over the expanding US-Israeli conflict with Iran and the risk of global supply disruptions.

Key factors behind market rise

1) Crude oil declines: Oil prices retreated on Tuesday after hitting their highest level in more than three years in the previous session as US President Donald Trump said the war in the Middle East could end soon, easing concerns over prolonged disruptions to global supplies. Brent crude, the global oil benchmark, fell 5.18 percent to USD 93.83 per barrel.

Russian President Vladimir Putin also held a call with Trump and shared proposals aimed at a quick settlement to the Iran war, which helped calm supply concerns.

"The panic reaction in crude prices which took Brent crude to near USD 120 yesterday has seen a reversal this morning, plunging Brent crude to USD 89. This kind of extreme swing of near USD 30 in one day reflects the huge uncertainty surrounding the impact of the West Asian conflict on global crude supplies," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

"During a war, uncertainty reigns supreme and this is what we are witnessing now," he added.

2) Firm global cues: Asian markets rebounded sharply, with South Korea’s Kospi rising nearly 5 percent and Japan’s Nikkei 225 gaining 2.5 percent. China’s Shanghai SSE Composite and Hong Kong’s Hang Seng were also trading in positive territory.

In the US, major indices settled higher in the previous session. The Nasdaq gained 308 points or 1.4 percent to close at 22,695, the S&P 500 rose 55 points or 0.8 percent to 6,795, and the Dow Jones Industrial Average advanced 239 points or 0.5 percent to 47,740.

"Comments from Donald Trump suggesting that the US–Israel conflict with Iran could conclude soon have triggered a decline in crude oil prices and the US dollar, helping restore risk appetite across global markets," Ponmudi R, CEO of Enrich Money told PTI.

"US equities closed the previous session in positive territory, while Asian markets are showing signs of recovery following the drop in oil prices, indicating a modest improvement in global sentiment," he added.

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3) India VIX declines: The India VIX, often referred to as the market’s fear gauge, dropped more than 12 percent to 20.48. The index measures expected volatility in the market over the near term, and a decline typically signals easing investor concerns and improved risk appetite.

4) Rupee rebounds: The rupee also recovered from its record low on Tuesday, rising 7 paise to 92.14 against the US dollar as global crude prices eased. A weaker dollar and a firm opening in domestic equities supported the local unit, though foreign fund outflows limited gains, forex traders said. At the interbank foreign exchange, the rupee opened at 91.92 before trading at 92.14, up 7 paise from its previous close.

Technical outlook:

According to Anand James, Chief Market Strategist at Geojit Investments, the recovery after holding above the opening lows and closing above the 24,000 mark in the previous session has revived hopes of further upside. He said the immediate rise could be capped in the 24,300–24,370 range, followed by consolidation or mild dips. A decisive move above this zone could open the way towards the 25,000 level.

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