Stock markets extended their rally for a third straight session on Tuesday, rising nearly 1 per cent as easing crude oil prices and optimism over progress in Iran-US peace talks lifted investor sentiment.
The 30-share BSE Sensex surged 753.03 points, or 0.96 per cent, to settle at 79,273.33. During the session, it had climbed as much as 846.78 points, or 1.07 per cent, to touch 79,367.08. Meanwhile, the 50-share Nifty 50 gained 211.75 points, or 0.87 per cent, to close at 24,576.60.
Among Sensex constituents, Trent Limited, Hindustan Unilever, ICICI Bank, Bajaj Finance, HDFC Bank and Axis Bank were among the top gainers. On the other hand, Bharat Electronics Limited, Titan Company, Reliance Industries and NTPC Limited ended lower.
Global oil benchmark Brent crude declined 0.75 per cent to USD 94.76 per barrel, offering relief to markets. According to Ponmudi R, CEO of Enrich Money, equities remained upbeat as investors positioned for a possible near-term de-escalation in the Middle East. He noted that energy markets were consolidating, balancing hopes of easing tensions and a potential reopening of the Strait of Hormuz against lingering uncertainty over ceasefire talks.
Alsso read: Rupee falls 32 paise, settles at 93.48 versus US dollar
Asian markets ended higher, with gains seen in key indices across South Korea, Japan, China and Hong Kong, while European markets were also trading in positive territory. US markets, however, had closed marginally lower on Monday.
Hariprasad K of Livelong Wealth said the rally was driven by both macroeconomic and market-specific factors. Easing geopolitical concerns, particularly around US-Iran tensions, improved risk appetite, while softer crude prices helped reduce inflation worries for an oil-importing country like India and improved margin outlook across sectors.
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 1,059.93 crore on Monday, according to exchange data.
Vinod Nair of Geojit Investments Limited added that hopes of progress in Iran-US negotiations, along with supportive global cues, helped Indian equities stage a strong rebound.
In the previous session, the Sensex had ended marginally higher by 26.76 points at 78,520.30, while the Nifty inched up 11.30 points to close at 24,364.85.
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