Indian equity markets opened higher on Tuesday, supported by a decline in crude oil prices and softer bond yields in the United States. The Sensex opened at 74,901.50, compared to a close of 74,858.99 on Monday, and was trading at 74,915.28, an increase of 56.29 points or 0.08 per cent around 9:25 am. The Nifty opened at 23,454.05 against a previous close of 23,414.30 and stood at 23,449.60, up 35.30 points or 0.15 per cent.
Global Market Drivers and Diplomatic Optimism
Market and banking expert Ajay Bagga stated that global risk appetite experienced a high-conviction rebound on Monday. This shift was driven by a sharp retreat in crude oil prices, pre-summit optimism regarding high-level talks between the U.S. and China, and renewed diplomatic posturing between Tehran and Washington. According to Bagga, global bond yields stabilized while Wall Street surged toward near-record highs, fueled by a massive rally in tech equities.
Crude oil prices have posted a fourth straight session of losses, which Bagga said is unwinding a significant portion of the recent geopolitical risk premium. Brent crude was priced around $101.24 a barrel, while crude oil traded near $93.03.
Impact on Indian Indices and Sector Performance
Analyst Vipin Dixena noted that crude oil falling toward the $100-$101 range is positive for India, as it reduces pressure on the import bill, inflation, and the rupee. Dixena observed that the Nifty has gained for four consecutive sessions, though he noted that sustained participation from foreign institutional investors (FII) would make the recovery more convincing.
Broad-market indices showed general gains in early trade. The Nifty Realty sector was the top gainer, rising more than 1 per cent. Conversely, Nifty IT was the biggest laggard, falling over 1 per cent, followed by Nifty Midsmall IT & Telecom.
On the NSE, top gainers included HDFC Bank, M&M, Coal India, Asian Paints, IndiGo, HDFC Life, JSW Steel, Tata Steel, SBI Life, Power Grid, Bajaj Finance, and LT. Early losers on the NSE included Infosys, Tech Mahindra, HCL Tech, Axis Bank, Bajaj-Auto, and Cipla. On the BSE, top gainers included Adani Ports, Maruti, Kotak Bank, Trent, NTPC, Eternal, and others such as HDFC Life, IndiGo, Asian Paints, M&M, LT, and Power Grid. The top drags on the BSE were Reliance, Hindustan Unilever, Bharti Airtel, Tech Mahindra, Infosys, and HCL Tech.
Dixena identified 23,500–23,600 as the key resistance zone, stating that a move above 23,600 is necessary to signal a stronger trend. He noted that if that level is breached, 23,800–24,000 becomes possible. On the downside, immediate support is at 23,300, followed by a crucial level at 23,000.