Shares of crude-sensitive companies rallied in early trade after Brent crude prices fell below pre-Iran war levels, raising expectations of lower input costs for businesses dependent on oil. The decline in global crude prices followed easing geopolitical tensions in the Middle East and improving prospects for global energy supplies, prompting investors to increase exposure to sectors that benefit from lower fuel prices.

InterGlobe Aviation, the parent company of IndiGo, rose over 2 percent in early trade as lower aviation turbine fuel prices are expected to support the airline's operating margins. Oil marketing companies Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) also gained more than 3 percent on expectations that softer crude prices could improve marketing margins and reduce working capital pressures.

Brent crude slipped below $72 per barrel, falling beneath levels prevailing before the Iran conflict, as markets shifted their focus from potential supply disruptions to the prospect of increased oil availability. Analysts noted that improving tanker movements through the Strait of Hormuz and expectations of higher Iranian oil exports have significantly eased concerns over global supply shortages.

Lower crude oil prices are generally positive for India's economy, which imports a large share of its crude oil requirements. Softer oil prices help moderate inflationary pressures, reduce the country's import bill and improve profitability for fuel-intensive sectors such as aviation, paints, tyres and oil marketing companies.