The benchmark equity indices Sensex and Nifty recovered from early losses to trade in positive territory on Tuesday, driven by strong buying in information technology stocks and easing crude oil prices.

The Sensex initially declined 130.56 points, or 0.16 percent, to 76,705.22, while the Nifty slipped 34 points, or 0.14 percent, to 23,961.95 in early trade. However, value buying at lower levels helped both indices erase losses. By around 11:15 am, the Sensex was trading 72.90 points higher at 76,908.68, while the Nifty gained 28.15 points to 24,024.10.

The primary driver of the recovery was strong buying in information technology stocks. The Nifty IT index advanced nearly 3 percent, outperforming broader Asian technology stocks, which remained under pressure due to concerns over the rising funding requirements of the artificial intelligence industry. Indian IT companies were viewed as relatively insulated from these concerns as the sector has limited exposure to pure-play AI businesses.

The IT sector also extended its recent rally following Jefferies' upgrade of the sector's rating to "Neutral" from "Underweight." Over the previous two trading sessions, the Nifty IT index had gained around 6 percent. Among the leading gainers on the benchmark index were Tata Consultancy Services, HCL Technologies, Tech Mahindra and Infosys, which recorded strong intraday gains.

Market sentiment also improved as global crude oil prices continued to decline. Brent crude fell about 1.2 percent to nearly $87.3 per barrel, extending the sharp decline witnessed in the previous session. The fall in oil prices followed comments from US President Donald Trump indicating that discussions with Iran were progressing positively, raising hopes of easing geopolitical tensions and reducing concerns over potential supply disruptions.

Investors also remained focused on the upcoming US Federal Reserve policy decision. Market participants broadly expect the central bank to leave interest rates unchanged while closely monitoring inflation risks arising from recent geopolitical developments. Expectations of a stable policy stance provided additional support to global risk sentiment.

From a technical perspective, analysts noted that the recent recovery has brought the Nifty close to its short-term moving averages, which may act as immediate resistance. However, the broader market structure remains constructive as long as the index holds above key support levels near 23,891 and 23,800.