New Delhi: Equity benchmark indices Sensex and Nifty bounced back sharply on Tuesday early trade after two days of massive decline, following a drop in crude oil prices and recovery in global markets amid hopes that the conflict in West Asia could conclude soon.
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The 30-share BSE Sensex rebounded 809.57 points to 78,375.73 in opening trade. The 50-share NSE Nifty climbed 252.75 points to 24,280.80.
Brent crude, the global oil benchmark, tumbled 5.18 percent to USD 93.83 per barrel.
"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.
"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," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
From the 30-Sensex firms, InterGlobe Aviation, UltraTech Cement, Asian Paints, Adani Ports, Mahindra & Mahindra and Titan were among the major gainers.
Reliance Industries, Infosys, Eternal, HCL Tech and Tech Mahindra were among the laggards.
"The panic reaction in crude prices which took the Brent crude to near $120 yesterday has seen a reversal this morning plunging Brent crude to $89. This kind of extreme swing of near $30 in one day is reflective of the huge uncertainty surrounding the impact of the West Asian conflict on global crude supplies. During a war, uncertainty reigns supreme and this is what we are witnessing now," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,345.57 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however bought stocks worth Rs 9,013.80 crore.
On Monday, the Sensex tanked 1,352.74 points or 1.71 percent to settle at 77,566.16, registering its second day of decline. On similar lines, the Nifty dropped 422.40 points or 1.73 percent to end at 24,028.05.
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