Last Updated on March 10, 2026 11:22 pm by INDIAN AWAAZ
By AMN Biz Desk
Indian equity markets staged a strong rebound on Tuesday, snapping a recent losing streak as falling crude oil prices and signals of a possible de-escalation in Gulf tensions boosted investor confidence.
The benchmark BSE Sensex climbed 639.82 points, or 0.82 per cent, to close at 78,205.98, while the Nifty 50 rose 233.55 points, or 0.97 per cent, to settle at 24,261.60.
Broader markets outperformed the frontline indices, reflecting strong participation from mid- and small-cap stocks. The Nifty Midcap 100 advanced 1.62 per cent to 57,177.65, while the Nifty Smallcap 100 surged 2.12 per cent to end at 16,473.80.
Investor sentiment improved sharply after global crude oil prices retreated from Monday’s spike triggered by drone attacks on Gulf energy infrastructure and disruptions near the Strait of Hormuz. Oil prices, which had briefly climbed to around $119.5 per barrel, fell to about $84.4 on Tuesday after remarks from Donald Trump suggesting that the Gulf conflict could end “very soon”.
Trump also hinted at possible steps including easing oil-related sanctions and deploying the U.S. Navy to escort oil tankers through strategic shipping lanes, moves that helped calm energy markets and supported equities.
Market breadth remained firmly positive. Of the 4,420 stocks traded on the BSE, as many as 3,053 ended higher while 1,231 declined and 136 remained unchanged. Within the Nifty 500 universe, 431 stocks closed in positive territory.
However, analysts noted that underlying weakness has not completely faded, as 237 stocks hit 52-week lows compared to only 65 reaching fresh yearly highs.
Auto Sector Leads the Rally
Automobile stocks emerged as the biggest gainers during the session, with the sector rising over 3 per cent on the indices.
Shares of Eicher Motors jumped 3.84 per cent, while Mahindra & Mahindra gained 3.40 per cent. TVS Motor Company also advanced nearly 3.73 per cent.
Lower crude prices, which reduce input and logistics costs, supported auto stocks and boosted expectations of improved margins.
Financials and Banking Show Strength
Financial stocks also saw strong buying interest. The Nifty Financial Services index climbed 1.90 per cent, while the Nifty Bank index rose 1.66 per cent.
The highlight in the segment was Shriram Finance, which surged 8.05 per cent to close at ₹1,066.70, emerging as the top gainer in the Nifty 50.
Public sector banking stocks also gained traction as easing global risk sentiment encouraged investors to rotate back into cyclical sectors.
Aviation and Travel Stocks Gain
The aviation sector also benefited from the fall in crude prices, which account for a large portion of airline operating costs.
Shares of InterGlobe Aviation, which operates the airline brand IndiGo, rose 3.46 per cent to close at ₹4,383.50.
Lower fuel costs typically translate into better profitability prospects for airline companies.
IT Sector Under Pressure
The Nifty IT index was the only major sectoral loser during the session, reflecting profit booking after strong gains in the previous trading day.
Shares of Infosys slipped 1.41 per cent, while Tata Consultancy Services declined 0.40 per cent.
Market participants attributed the weakness to sectoral rotation as investors moved funds from defensive technology stocks into cyclical sectors such as financials and automobiles.
Oil, Telecom and Energy Stocks Mixed
Energy stocks saw mixed movement as crude price volatility continued to influence the sector. Shares of Reliance Industries fell 0.92 per cent.
Meanwhile, telecom major Bharti Airtel declined 0.59 per cent amid mild profit booking.
Volatility Eases
Investor anxiety eased significantly during the session as the market volatility indicator India VIX dropped more than 19 per cent to close at 18.90.
The sharp fall in the volatility index suggested that traders were regaining confidence after several days of geopolitical-driven uncertainty.
Commodities: Gold and Silver Rally
In the commodities market, bullion prices surged as geopolitical tensions and central bank buying continued to support demand.
Spot gold climbed above $5,190 per ounce, while silver gained nearly 3 per cent to trade around $90 per ounce.
Analysts noted that persistent purchases by the People’s Bank of China have supported gold prices, with the bank extending its buying streak for a sixteenth consecutive month.
Rupee Gets Mild Relief
The Indian currency also found modest support as the U.S. dollar weakened. Lower crude oil prices helped ease pressure on India’s import bill, offering some relief to the rupee.
However, currency analysts cautioned that the rupee’s direction will remain sensitive to geopolitical developments and future movements in crude oil prices.
Technical Outlook
Technical analysts believe the recovery represents a short-term pullback after the sharp correction seen in recent sessions.
Market experts say the Nifty must hold above the 24,000–24,100 support zone to sustain the recovery, while immediate resistance is seen around the 24,400–24,450 range.
Investors will closely monitor developments related to the U.S.–Iran tensions and possible production responses from global oil producers, as these factors are expected to determine the direction of crude prices and equity markets in the coming sessions.