Sensex and Nifty Rebound Sharply in Early Trade as Crude Oil Prices Ease

Sensex and Nifty Rebound Sharply in Early Trade as Crude Oil Prices Ease​

Mumbai, March 20: Domestic benchmark indices staged a strong recovery in early trading on Friday, bouncing back after a steep decline in the previous session. The rebound was supported by a decline in global crude oil prices, which improved overall market sentiment.

The BSE Sensex surged 976.77 points to reach 75,184.01, while the NSE Nifty jumped 301.7 points to 23,303.85 during early trade.

Banking and Metal Stocks Lead Gains​

Among the 30-share Sensex pack, major gainers included Tata Steel, State Bank of India, Tech Mahindra, Larsen & Toubro, Power Grid, and NTPC, driving the market higher.

HDFC Bank emerged as the only laggard in early trading.

Crude Oil Decline Boosts Market Sentiment​

Global oil prices showed signs of easing, offering relief to equity markets. Brent crude declined 1.63 percent to USD 106.9 per barrel, following earlier highs.

Market participants tracked developments in West Asia closely. Comments from Israel’s Prime Minister indicating no further attacks on Iran’s oil and gas infrastructure contributed to easing concerns, which in turn reduced crude prices from earlier elevated levels.

Global Market Cues Remain Mixed​

Across Asian markets, South Korea’s Kospi and China’s Shanghai SSE Composite index traded higher, while Hong Kong’s Hang Seng index remained under pressure.

Meanwhile, US markets closed in negative territory on Thursday, reflecting cautious global sentiment.

Institutional Activity and Previous Session Losses​

Foreign Institutional Investors continued to exert selling pressure, offloading equities worth Rs 7,558.19 crore on Thursday. In contrast, Domestic Institutional Investors bought stocks worth Rs 3,863.96 crore, helping cushion the impact.

The rebound follows a sharp correction in the previous session. On Thursday, the Sensex plunged 2,496.89 points or 3.26 percent, marking its biggest single-day fall since June 2024, to close at 74,207.24. The Nifty also dropped 775.65 points or 3.26 percent to settle at 23,002.15.

Market Outlook Supported by Easing Geopolitical Concerns​

Recent signals indicating a possible de-escalation in tensions have supported global market stability. The moderation in crude oil prices has played a key role in improving investor sentiment and driving the early recovery in Indian equities.