Sensex up 400 points, Nifty above 23,950; metal stocks lag

Benchmark indices opened higher on Tuesday, extending gains for a third consecutive session, as a sharp decline in crude oil prices and a rally across global equity markets boosted investor sentiment. The positive momentum followed a reported agreement between the US and Iran to end their 107-day conflict, easing concerns over energy supply disruptions and supporting risk appetite globally.

BSE Sensex climbed 411.62 points or 0.54 per cent to 76,675.95 at 9.32 am after opening at 76,526.77. NSE Nifty 50 increased by 98.70 points or 0.41 per cent to 23,952.60 after opening at 23,923.90.

The broader market also remained firm, with the Nifty Midcap and Smallcap indices gaining 0.3-0.5 per cent. Market volatility eased further, with the India VIX declining more than 4 per cent to trade below the 14 mark.

Lower crude prices, stable rupee support market mood

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the correction in crude oil prices and stability in the domestic currency are improving the macroeconomic backdrop for Indian equities.

“The sharp correction in Brent crude to below $84 and stability in the rupee have the potential to impart resilience to the market. The strong macro headwind of rising BoP deficit is no longer a serious issue plaguing the economy. This positive development, in turn, has imparted stability to the rupee which has appreciated to ₹94.71 to the dollar from the recent low of ₹96.96,” Vijayakumar said.

He added that the improved macro environment could help moderate foreign institutional investor selling going forward. However, he cautioned that renewed interest in artificial intelligence-linked trades and stronger momentum in markets such as South Korea and Taiwan may continue to divert foreign flows away from India. He also noted that current market valuations do not support a sustained rally.

Vijayakumar further flagged the progress of the monsoon as a key risk factor, warning that a prolonged shortfall in rainfall could stoke inflationary pressures.

Global markets rally after US-Iran deal

Global cues remained supportive after Wall Street posted strong gains overnight. The Nasdaq surged 3.1 per cent, while the S&P 500 and Dow Jones advanced 1.7 per cent and 0.9 per cent, respectively, as investors welcomed the geopolitical breakthrough between the US and Iran.

Meanwhile, the yield on the US 10-year Treasury note eased below 4.5 per cent, while Brent crude slipped further to around $83 per barrel following the reopening of the Strait of Hormuz for commercial shipping traffic.

Asian markets traded mixed in early deals, although the overall tone remained constructive.

Metal stocks under pressure despite broad-based gains

Sectorally, most indices traded in positive territory, with metal and cement stocks emerging as the only notable laggards. The Nifty Metal index declined more than 1 per cent, making it the worst-performing sector in early trade.

Among Nifty 50 constituents, HCLTech, Hindustan Unilever, Bajaj Finance, Tata Consumer Products and Bajaj Finserv were the top gainers. On the other hand, Hindalco Industries, Axis Bank, JSW Steel and Power Grid Corporation led the declines.

The newly listed Vedanta group stocks, Vedanta Aluminium Metal and Vedanta Oil and Gas, traded at the lower circuit, dragging the metal index along with Hindalco and National Aluminium among top losers.

Market breadth remained firmly positive on the NSE. Of the 2,685 stocks traded, 1,831 advanced, 750 declined and 104 remained unchanged.

As many as 49 stocks touched their 52-week highs, while 11 hit fresh 52-week lows. Additionally, 54 stocks were locked in the upper circuit and 20 hit the lower circuit.

Midcaps and smallcaps see stock-specific action

In the midcap segment, 360 ONE WAM, Tube Investments, Lenskart and GMR Airports gained between 2 per cent and 3 per cent. Meanwhile, National Aluminium, Groww and MCX declined 2-4 per cent.

Among smallcaps, Dr Lal PathLabs, Devyani International and PG Electroplast rallied 3-8 per cent. In contrast, Aarti Industries, IFCI, Angel One and Ola Electric slipped 1-2 per cent in early trade.

On Monday, benchmark indices extended their winning streak, with the Nifty 50 advancing 231 points, or 0.98 per cent, to settle at 23,853.90, while the Sensex climbed 736.41 points, or 0.97 per cent, to end at 76,264.33.

The sharp upmove significantly boosted investor wealth, with the combined market capitalisation of BSE-listed companies rising by ₹8.5 lakh crore to ₹470.5 lakh crore. Over the past two trading sessions, investors have added more than ₹18 lakh crore to their wealth.