Indian Markets Rebound as Oil Prices Fall on Middle East De-escalation Hopes
Indian benchmark indices rose on Tuesday, recovering from the previous session’s sharp losses as global markets rallied after U.S. President Donald Trump signaled that the Middle East conflict could end soon. The Nifty 50 gained 0.4% to 24,132.10, while the Sensex advanced 0.4% to 77,912.50 in morning trade, supported by easing concerns over prolonged oil supply disruptions. Broader midcap and smallcap indices also climbed nearly 1%, with most sectoral indices opening in positive territory.
The rally followed a decline in crude oil prices, with Brent futures dropping about 4.8% to $94.21 per barrel after recently crossing $100 amid fears linked to the expanding U.S.-Israeli conflict with Iran. Lower oil prices lifted sentiment in oil-sensitive sectors, helping major lenders HDFC Bank and ICICI Bank rebound after steep losses a day earlier. Analysts described the move as a relief rally, noting that Indian markets had fallen nearly 5% since tensions escalated.
Stocks tied to fuel costs saw strong buying interest, with airline operator IndiGo rising 3.2% and Asian Paints gaining 2.5% as cheaper crude improves cost outlooks. Among individual stocks, Dixon Technologies jumped 4.3% after securing government approval for a joint venture with a Chinese firm, while Minda Corp added 3% following a partnership announcement with UK-based Turntide Drives.
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