Indian Stock Market Rallies in Early Trading Led by Easing Oil Prices and Global Market Sentiment

Indian Markets Surge as Crude Oil Prices Decline and Asian Markets Rally

Indian equities made a strong start to the day, with the Sensex and Nifty surging in early trade on Tuesday. The gains were driven by a combination of factors, including a decline in crude oil prices and optimism in Asian markets. At 09:20 am, the Sensex was up 420 points, or 0.54 percent, at 78,940, while the Nifty gained 110 points, or 0.45 percent, to hover near the 24,500 mark.

Market breadth was strong, with 1,973 shares advancing against 663 declining, while 127 remained unchanged. Volatility cooled further, with India VIX down over 3 percent to 18.10.

The key factors driving markets higher today include a decline in crude oil prices following Monday's sharp spike. Brent crude oil prices eased towards the $94-95 per barrel range on expectations of renewed US-Iran peace talks. This cooling in oil prices provided relief to markets after recent concerns over supply disruptions.

Asian markets traded higher, supported by optimism around potential diplomatic progress between the US and Iran. Gains in Japan and South Korea, along with a broader uptick in Asia-Pacific equities, boosted sentiment.

The decline in India VIX, which fell over 3 percent, signals a moderation in near-term risk perception after the sharp rise seen in the previous session.

Financial stocks were among the top gainers, with ICICI Bank, Axis Bank, and Bajaj Finance contributing significantly to the upmove. The Nifty Bank index rose over 0.8 percent, while private banks outperformed.

Buying was seen across sectors, with Realty, Metal, Auto, and Infrastructure indices advancing. The Realty index rose nearly 1.7 percent, while PSU banks and energy stocks also traded higher, indicating broad participation. The advance-decline ratio remained favourable, pointing to widespread buying across the market beyond index heavyweights.

Technology stocks lagged the broader market, with Infosys, TCS, and Tech Mahindra trading lower, along with weakness in select insurance names such as SBI Life and HDFC Life. On the global front, while hopes of renewed talks have supported sentiment, uncertainty around US-Iran developments persists, keeping markets sensitive to news flow.

Analysts expect a mildly positive but range-bound start. According to Aakash Shah of Choice Broking, the Nifty continues to hold above the 24,300 zone, indicating a near-term positive bias, though momentum is slowing. Immediate resistance is seen around 24,450-24,500, while support is placed near 24,150-24,200.

| Sector | Index Change | | --- | --- | | Realty | 1.7% | | Metal | (no specific change mentioned) | | Auto | (no specific change mentioned) | | Infrastructure | (no specific change mentioned) | | PSU Banks | (no specific change mentioned) | | Energy | (no specific change mentioned) |