Sensex Sheds Losses After Declining 130 Points, Nifty Trades Marginally Down Amid Geopolitical Uncertainty

Indian equity markets started on a cautious note on Tuesday but recovered soon after, with benchmark indices moving higher due to strong buying in information technology stocks, lower crude oil prices and appreciation in the rupee.

The BSE Sensex gained 145.31 points, or 0.19%, to 76,981.09 in early trade, while the NSE Nifty50 advanced 23.95 points, or 0.10%, to 24,019.90.

IT stocks emerged as the biggest contributors to market gains. The Nifty IT index jumped 2.69%, making it the best-performing sector during early trade, while the Nifty MidSmall IT & Telecom index climbed 1.69%.

Among major Sensex constituents, Tata Consultancy Services (TCS) led the rally with a gain of 3.23%. Tech Mahindra rose 2.78%, Infosys gained 2.58% and HCLTech advanced 1.77%. Other gainers included Eternal, Hindustan Unilever, Larsen & Toubro, Titan, Cement stocks and InterGlobe Aviation.

However, gains remained limited due to selling pressure in some heavyweight stocks. Bharat Electronics Ltd (BEL) declined 2.73% and emerged as the biggest laggard.

NTPC, Power Grid, Reliance Industries, Bharti Airtel, Trent, State Bank of India and Adani Ports also traded lower.

Sector-wise, apart from IT, buying interest was seen in realty, FMCG and media stocks. The Nifty Realty index gained 0.52%, FMCG rose 0.45%, while media stocks edged up 0.20%. Healthcare and pharmaceutical stocks also traded slightly higher.

On the other hand, PSU Bank stocks declined 0.26%, while auto, metal and oil and gas indices remained under pressure.

The broader market showed a mixed trend. While the Nifty Midcap 50 gained 0.08% and some broader indices traded marginally higher, midcap and smallcap segments remained subdued. India VIX, the market volatility gauge, increased slightly by 0.21% to 12.69.

Market sentiment also received support from falling crude oil prices. Brent crude declined 1.38% to $87.14 per barrel, while WTI crude slipped 1.38% to $81.47. Lower oil prices benefit India, which imports a large share of its crude requirement, by reducing inflation risks and lowering import costs.

The rupee strengthened 0.16% to 95.76 against the US dollar, adding further support to equities.

Analysts expect markets to remain influenced by quarterly earnings, global crude trends and upcoming monetary policy decisions by major central banks.