Indian equity markets opened on a positive note on Tuesday, extending their recovery after a sharp but short lived selloff earlier in the week. Benchmark indices rebounded as global risk sentiment improved following a steep overnight correction in crude oil prices, which eased concerns about inflationary pressures and potential macroeconomic disruption.

By 09:30 am, the BSE Sensex was trading 445 points higher, or about 0.6 percent, at 78,011, while the Nifty 50 gained 135 points to reach 24,163. Market breadth remained firmly positive with advancing stocks significantly outnumbering decliners, signalling broad participation in the early recovery.

The rebound comes after an unusually volatile start to the week. On Monday, Indian equities witnessed sharp intraday declines as global markets reacted to rising geopolitical tensions in the Middle East, which pushed crude oil prices sharply higher. During the session, both the Sensex and Nifty plunged more than 3 percent before recovering part of their losses by the closing bell.

The major trigger behind Tuesday’s improved sentiment was a dramatic reversal in crude oil prices. Brent crude, which had briefly surged close to $120 per barrel amid fears of supply disruption, later dropped sharply to around $89 per barrel. The move eased immediate concerns over energy inflation and its potential impact on global growth.

Market strategists say such volatility reflects uncertainty around the trajectory of the West Asian conflict and the possibility of disruptions to global oil supply chains. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the sudden swings in crude prices are directly feeding into global financial market volatility.

He noted that historically, geopolitical conflicts tend to have only a temporary impact on equity markets. In his view, investors typically refocus on economic fundamentals once the initial shock subsides, suggesting that market corrections during such episodes may provide opportunities for long term investors to accumulate fundamentally strong companies.

Sectorally, most parts of the Indian market traded higher during early deals. Consumer facing segments led the gains, with the Nifty Consumer Durables index rising around 2 percent. The Nifty Auto index also advanced roughly 1.4 percent, while the Nifty Pharma index gained close to 1.5 percent as defensive sectors attracted buying interest.

Banking stocks, which had seen sharp selling pressure in the previous session, also showed signs of stabilisation. The Nifty Bank index moved higher by around 1 percent, while the Nifty PSU Bank index gained approximately 1.3 percent in early trade.

Among individual stocks, InterGlobe Aviation emerged as one of the top performers on the Nifty, rising around 3.6 percent. Shriram Finance also recorded strong gains of about 3.5 percent. Other notable gainers included UltraTech Cement, Asian Paints, Adani Ports, and Mahindra and Mahindra, which climbed between 2 percent and 2.3 percent. Stocks such as Titan Company, Dr Reddy’s Laboratories, Eicher Motors, and Tata Steel also traded higher, gaining between 1.4 percent and 1.9 percent.

On the other hand, a few stocks were under mild pressure. Oil and gas major ONGC declined as lower crude prices weighed on sentiment in the upstream energy space. Reliance Industries, Infosys, and Tech Mahindra also traded marginally lower, though the losses were relatively limited compared to the broader market gains.

A notable development during the session was the sharp decline in the India VIX, which fell nearly 13 percent to around 20.34. The drop in the volatility index indicates that investor anxiety has eased after the intense swings seen in the previous session.

Technical analysts say the recent correction had pushed the market into oversold territory, creating conditions for a short term rebound. According to Anand James, Chief Market Strategist at Geojit Investments, the Nifty’s ability to hold above the psychologically important 24,000 mark has revived hopes of further upside momentum in the near term.

He noted that the index could potentially move toward the 24,300 to 24,370 range if the current recovery sustains. A decisive breakout above this zone may open the path for a broader rally toward the 25,000 level. However, he also warned that consolidation may occur before any sustained move higher.