Benchmark stock indices Sensex and Nifty rebounded by nearly 2 per cent on Tuesday, tracking a relief rally in Asian peers after US President Donald Trump announced a temporary halt on strikes targeting Iranian energy infrastructure.
The 30-share BSE Sensex jumped 1,372.06 points or 1.89 per cent to settle at 74,068.45. During the day, it soared 1,793 points or 2.46 per cent to 74,489.39. The 50-share NSE Nifty surged 399.75 points or 1.78 per cent to end at 22,912.40.
From the 30-Sensex firms, Larsen & Toubro, InterGlobe Aviation, Eternal, Asian Paints, Bajaj Finance and UltraTech Cement were the biggest winners. Power Grid and State Bank of India were the only laggards from the pack.
Trump said on social media that he has extended the deadline for Iran to reopen the Strait of Hormuz, the strategically located shipping lane between the Persian Gulf and the Gulf of Oman, and that he will hold off strikes against Iranian energy sites for five days.
Indian equities witnessed a constructive rebound, with markets closing on a positive note after the sharp sell-off in the previous session. The recovery was largely driven by a moderation in risk perception, as early signs of potential de-escalation in the ongoing US–Iran tensions helped restore some investor confidence.
After a sharp, sentiment-driven correction, such rebounds are not uncommon and often reflect a combination of short covering and value buying. Investors typically use such dislocations to accumulate quality stocks at relatively attractive valuations, rather than it being a signal of a structural trend reversal.
The domestic market witnessed a relief rally following a temporary pause in attacks on Iran’s energy infrastructure, which could lead to further leeway in easing West Asia-related tensions. However, caution persists as investors await greater clarity on the developments around the Strait of Hormuz.
Investors’ wealth surged by Rs 7.56 lakh crore to Rs 4,22,78,312.77 crore (USD 4.50 trillion). The BSE MidCap Select index jumped 2.77 per cent and SmallCap Select index climbed 2.29 per cent.
All sectoral indices ended higher. Services surged 3.46 per cent, followed by BSE MidSmall Private Banks Quality Tilt (2.99 per cent), industrials (2.98 per cent), Private Banks index (2.63 per cent), consumer durables (2.46 per cent), Bankex (2.40 per cent), consumer discretionary (2.39 per cent), financial services (2.34 per cent), auto (2.30 per cent) and commodities (2.19 per cent). A total of 2,968 stocks advanced, while 1,295 declined and 168 remained unchanged on the BSE.
Market sentiment improved as tensions eased regarding the ongoing US-Iran conflict, with crude oil prices dropping more than 11 per cent after US President Donald Trump announced a delay in military actions against Iran. This development helped alleviate fears of potential supply shocks, which had previously weighed heavily on investor sentiment. The market's recovery today can also be attributed to a broader sense of optimism following the massive selloff experienced on Monday.
Gold rebounds ₹1,200, silver stays flat
New Delhi: Gold prices snapped a four-day losing streak and climbed Rs 1,200 to Rs 1.44 lakh per 10 grams in the national capital on Tuesday, while silver remained flat at Rs 2.30 lakh per kilogram. The precious metal of 99.9 per cent purity had closed at Rs 1,43,600 per 10 grams on Monday. Traders attributed the rebound in domestic gold prices to a recovery in global commodity markets and some buying at lower levels after recent sharp declines.
Rupee settles at 93.88 against US dollar
The rupee dropped 35 paise to 93.88 against the US dollar on Tuesday as a strengthening greenback against major crosses and elevated global crude prices spooked investors. Foreign fund outflows amid uncertainties over the West Asia crisis further weighed on the local unit, forex traders said.
At the interbank foreign exchange, the local unit opened at 93.66 against the greenback and remained volatile throughout the session. It eventually settled at 93.88 (provisional), down 35 paise from its previous close. The rupee breached the 94-level against the US dollar for the first time on Monday, before closing flat at 93.53.
Also read: Sensex jumps 1,000 points, Nifty gains 300 in early trade
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