Indian equity markets started Tuesday’s session on a positive note, supported by easing crude oil prices and stronger cues from Asian peers. The benchmark indices, Sensex and Nifty, advanced in early trade, reflecting a rebound in sentiment after recent volatility driven by global geopolitical concerns.

At around 09:20 am, the Sensex gained over 400 points to trade near 78,940, while the Nifty moved closer to the 24,500 mark. The uptick was not limited to index heavyweights market breadth remained firmly positive, with advancing stocks significantly outnumbering decliners. This indicates broader participation in the rally rather than a narrow, large-cap driven move.

The primary trigger for the improved sentiment appears to be the cooling in crude oil prices. Brent crude, which had surged sharply in the previous session, eased back towards the $94–95 per barrel range on expectations of renewed diplomatic engagement between the United States and Iran. Lower oil prices tend to act as a positive macro signal for India, given its heavy dependence on energy imports.

A moderation in crude reduces pressure on inflation, fiscal balances, and currency stability three critical macro variables closely tracked by investors. The easing in oil therefore provided immediate relief to markets that had recently turned cautious amid concerns of supply disruptions and escalating geopolitical tensions.

Global cues further reinforced the positive tone. Asian markets traded higher, with gains seen across Japan, South Korea, and broader Asia-Pacific equities. The optimism was again linked to the possibility of easing geopolitical tensions through diplomatic channels. While this does not eliminate uncertainty, it signals a temporary stabilisation in risk perception across global markets.

Domestically, the decline in volatility was another key supporting factor. India VIX, often referred to as the market’s fear gauge, dropped more than 3 percent to hover near 18. This suggests that traders are pricing in lower near-term risk compared to the previous session, when volatility had spiked sharply.

Sectorally, financial stocks emerged as the clear leaders of the rally. Private sector banks and NBFCs drove the upmove, with stocks such as ICICI Bank, Axis Bank, and Bajaj Finance contributing significantly. The Nifty Bank index rose over 0.8 percent, outperforming the broader market.

The strength in financials is notable, as this segment often acts as a proxy for domestic economic confidence. Continued buying in banks suggests that investors remain constructive on credit growth and balance sheet strength, even amid global uncertainties.

Beyond financials, buying interest was visible across multiple sectors. Realty stocks led the gains with a near 1.7 percent rise, while metals, auto, infrastructure, PSU banks, and energy stocks also moved higher. Such broad-based participation indicates that the rally is not isolated but reflects a wider improvement in risk appetite.

However, the rally was not uniform across all sectors. Information technology stocks lagged, with Infosys, TCS, and Tech Mahindra trading lower. Weakness was also observed in insurance names like SBI Life and HDFC Life.

This divergence reflects ongoing concerns around global demand and margin pressures in export-oriented sectors such as IT, which remain sensitive to economic signals from the US and Europe.

From a technical perspective, market participants are watching key levels closely. According to market commentary, the Nifty continues to hold above the 24,300 zone, maintaining a near-term positive bias. However, momentum appears to be moderating, suggesting that upside could face resistance near the 24,450–24,500 range, while support is seen around 24,150–24,200.