Dalal Street staged a strong comeback on Tuesday, with benchmark indices ending sharply higher after Monday’s steep sell-off.
The Sensex surged 1,372 points to close at 74,068.45, while the Nifty 50 rose 399.75 points to settle at 22,912.40, reclaiming the 22,900 mark.
The rally was largely driven by easing concerns around global tensions and a fall in crude oil prices, which improved overall market sentiment.
Reports suggesting possible backchannel talks in West Asia raised hopes that the conflict may not escalate further, helping calm investor nerves.
Lower crude oil prices also supported the rally. This is significant for India, as softer oil prices ease concerns around inflation and the current account deficit, both of which are closely watched by markets.
Banking stocks led the rebound, with heavyweight lenders seeing strong buying interest. HDFC Bank rose around 3%, emerging as one of the top contributors to the index gains.
Other banking names like ICICI Bank, Kotak Mahindra Bank and Axis Bank also traded in the green, reflecting broad-based strength in the sector.
Apart from banks, gains were seen across sectors including capital goods, auto and IT, indicating that the rally was not limited to a single pocket of the market.
Tuesday’s rally also reflects a technical rebound after Monday’s sharp decline, as investors stepped in to buy quality stocks at lower levels.
Many large-cap stocks had corrected significantly in recent sessions, prompting bargain hunting. This helped lift overall market sentiment.
However, analysts caution that volatility is likely to persist in the near term, given ongoing global uncertainties and continued selling by foreign investors.
While the sharp rebound is encouraging, the sustainability of the rally will depend on how global cues, crude oil prices and foreign fund flows evolve in the coming days.