Indian benchmark indices Sensex and Nifty rallied over 1.5% as falling crude oil prices and renewed foreign investor interest boosted market sentiment across sectors despite mixed performance in global markets.

Market Performance and Overview

Indian stock markets closed sharply higher on Tuesday, with both benchmark indices gaining more than 1.5 per cent, supported by a decline in crude oil prices, renewed foreign investor buying and positive sentiment across most sectors. The BSE Sensex surged 1,225.07 points, or 1.62 per cent, to close at 76,917.85. Similarly, the Nifty 50 index gained 370.05 points, or 1.58 per cent, to settle at 23,810.85.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities extended their recovery as a sharp decline in crude oil prices, falling US Treasury yields and renewed foreign institutional investor (FII) interest eased recent macroeconomic pressures. "Resilient Q2 earnings further strengthened confidence in the domestic growth outlook, while the return of foreign investors after prolonged selling provided a liquidity boost, driving broader participation led by financials and consumption-oriented sectors," he said. He added that the sustainability of the recovery would depend on broader earnings performance, continued FII inflows and further moderation in oil prices and global yields. Geopolitical developments and the US Federal Reserve's policy decisions would remain key external factors.

Sectoral Performance and Stock Movement

Among sectoral indices on the NSE, Nifty FMCG emerged as the top performer, surging 3.18 per cent, followed by Nifty Realty, which gained 2.10 per cent. Nifty Private Bank advanced 1.77 per cent, while Nifty Auto rose 1.47 per cent. Nifty Media also closed 0.49 per cent higher. However, some sectors remained under pressure. Nifty PSU Bank declined 1.37 per cent, Nifty Metal fell 0.40 per cent, and Nifty IT lost 0.15 per cent.

Among the Nifty 50 constituents, BSE, Nestle India, Tata Consumer and Asian Paints were among the top gainers. On the other hand, PowerGrid, SBI, ONGC, Adani Enterprises, Tata Steel and NTPC featured among the major losers.

Commodities and Currency Impact

In the commodities market, Brent crude oil was trading at USD 105.71 per barrel at the time of reporting. Gold and silver prices continued to decline. Gold prices fell 1.26 per cent to Rs 1,38,420 per 10 grams for 24-karat gold, while silver prices dropped 3.59 per cent to Rs 1,77,120 per kg. The Indian rupee also strengthened against the US dollar on Tuesday, trading at around 94.80, gaining roughly 12 to 24 paise.

Rajeev Sharan, Head of Research at Brickwork Ratings, said the sharp decline in crude oil prices had provided immediate relief to the currency market. "What changed today is that the market's biggest macro headwind finally cracked: Brent crude plunged nearly 6.5 per cent to USD 106 per barrel, turning an energy headwind into an immediate relief rally," he said. He added that the gains in the rupee remained modest due to a firm US dollar and caution ahead of the US mid-term elections. However, if crude oil prices remain lower, the outlook for the rupee could improve.

Global Market Context

Meanwhile, Asian markets largely traded lower. Japan's Nikkei 225 index declined 0.33 per cent to 63,081, while Taiwan's Weighted Index fell 3.72 per cent to 43,307. South Korea's KOSPI also dropped 3.72 per cent to close at 5,648. Singapore's Straits Times declined 0.66 per cent to close at 5,269. In contrast, Hong Kong's Hang Seng index gained 0.39 per cent to settle at 23,484.

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