Markets Rebound as Oil Cools; Sensex Jumps 500 Points, Nifty Tops 24,500

Indian equity benchmark indices surged in early trade on Tuesday, tracking gains in Asian markets and easing crude oil prices, with banking stocks leading the rally.

At around 9:50 am, the Sensex was up 500 points or 0.64% at 79,023, while the Nifty gained 142 points or 0.58% to cross the 24,500 mark. Market breadth remained strong, with 1,973 shares advancing against 663 declining and 127 unchanged. Volatility also eased, with India VIX declining over 3% to 18.10.

The rally was supported by a cooling in crude oil prices after Monday's sharp spike. Brent crude eased towards the $94–95 per barrel range amid expectations of renewed US-Iran peace talks, providing relief to markets concerned about supply disruptions.

Asian markets traded higher, boosting sentiment. South Korea's Kospi led gains with a rise of 1.70%, while Japan's Nikkei 225 and Hong Kong's Hang Seng advanced 1.11% and 0.23%, respectively.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets remain highly sensitive to geopolitical developments. "The market will continue to be news-driven, oscillating between hope and fear. Brent crude near $95 reflects confidence that the conflict may not last long, but any escalation could push oil prices higher and weigh on markets," he said.

Banking Stocks Lead Rally Despite FII Selling

Banking and financial stocks emerged as the key drivers of the rally, with the Nifty Bank index rising over 1% to trade above 57,196. The sector has seen a strong recovery, with Nifty Bank and Financial Services indices gaining around 12% and 12.5%, respectively, despite persistent foreign investor selling.

Foreign Institutional Investors have continued to offload equities, selling nearly ₹19,150 crore worth of financial stocks in the first half of April, following heavy outflows of around ₹60,000 crore in March. Despite this, analysts believe valuations in select large private banks remain attractive, supporting buying interest.

Selling by FIIs was also seen across sectors such as consumer services, healthcare, auto, oil & gas, FMCG, telecom and realty, reflecting a broader cautious stance.

Broad-based Buying Across Sectors

Broad-based buying was visible across sectors, with all indices except IT trading in the green. The Nifty Midcap 100 and Smallcap 100 indices rose around 1% each, indicating continued strength in broader markets.

Among stocks, Varun Beverages led the gains, rising over 3%, followed by Mazagon Dock, Adani Power and Siemens Energy India, which gained over 2% each. On the downside, SBI Life Insurance declined over 3%, while HDFC Life, Zydus, HDFC Asset Management and Adani Energy were among other laggards.