Sensex, Nifty rebound in early trade tracking recovery in global markets

Benchmark equity indices Sensex and Nifty bounced back in early trade on Tuesday, tracking a recovery in global markets and improving investor sentiment after signs of easing hostilities between Israel and Iran.

The 30-share BSE Sensex climbed 350.57 points to 73,874.83 in early deals, recovering part of the sharp losses suffered in the previous session. The NSE Nifty50 advanced 114.50 points to 23,237.50.

The rebound came after markets were rattled on Monday by geopolitical concerns and foreign fund outflows. The Sensex had plunged 719.08 points, or 0.97 per cent, to close at 73,524.26, while the Nifty fell 243.70 points, or 1.04 per cent, to settle at 23,123.

Among the top gainers on Tuesday were Trent, ICICI Bank, InterGlobe Aviation, Axis Bank, Mahindra & Mahindra and Bajaj Finserv. On the other hand, NTPC, Tata Steel, Infosys, Power Grid and Tech Mahindra traded in the red.

Investor sentiment received a boost as global crude oil prices eased amid indications that tensions between Israel and Iran may not escalate further.

Brent crude, the international oil benchmark, fell 1.15 per cent to USD 93.17 per barrel.

"Crude oil prices have stabilised following the easing of hostilities between Israel and Iran, offering some relief to energy markets. However, prices remain elevated in the USD 90–91 per barrel range, keeping concerns around inflation, import costs and the broader macroeconomic outlook firmly in focus," said Ponmudi R, CEO of Enrich Money.

Asian markets also showed signs of recovery after Monday's sell-off. South Korea's Kospi, Japan's Nikkei 225 and China's Shanghai Composite traded higher, while Hong Kong's Hang Seng was marginally lower.

Wall Street ended mostly higher overnight, aided by a rebound in technology and semiconductor stocks.

"US markets recovered from last week's technology-led sell-off, with the S&P 500 and Nasdaq ending higher as semiconductor stocks rebounded. Investor sentiment was also supported by hopes that geopolitical tensions in the West Asia may not escalate further after efforts to maintain a fragile ceasefire between Iran and Israel," said Hariprasad K, founder and research analyst at Livelong Wealth.

Despite the rebound, foreign investors remained cautious. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,555.67 crore on Monday.

Market participants will now closely track global geopolitical developments, crude oil prices and foreign fund flows for further direction.

With PTI inputs