Sensex, Nifty Surge Nearly 2% as Global Relief Rally Lifts Market Sentiment

Sensex, Nifty Surge Nearly 2% as Global Relief Rally Lifts Market Sentiment​

Mumbai, March 24: Benchmark equity indices Sensex and Nifty staged a strong recovery on Tuesday, rising nearly 2% each, as easing geopolitical concerns triggered a relief rally across global markets.

The rebound follows a sharp sell-off in the previous session, with investor sentiment improving after the United States announced a temporary halt to strikes on Iranian energy infrastructure.

Sensex Jumps Over 1,300 Points, Nifty Reclaims 22,900 Mark​

The BSE Sensex surged 1,372.06 points or 1.89% to close at 74,068.45, after touching an intraday high of 74,489.39, up 1,793 points or 2.46%.

The NSE Nifty climbed 399.75 points or 1.78% to settle at 22,912.40, recovering sharply from Monday’s steep decline.

Top Gainers and Laggards​

Among Sensex constituents, Larsen and Toubro, InterGlobe Aviation, Eternal, Asian Paints, Bajaj Finance, and UltraTech Cement emerged as top gainers.

Power Grid and State Bank of India were the only laggards in an otherwise broad-based rally.

Relief Rally Driven by Easing US-Iran Tensions​

Market sentiment improved after US President Donald Trump announced a five-day delay in strikes targeting Iranian energy sites and extended the deadline for Iran to reopen the Strait of Hormuz.

This development signaled potential de-escalation in tensions in West Asia, reducing concerns over supply disruptions and supporting global equity markets.

Broad-Based Buying Lifts Midcap, Smallcap Stocks​

The rally extended across broader markets, with the BSE MidCap Select index rising 2.77% and the SmallCap Select index advancing 2.29%.

All sectoral indices closed in the green. Services led the gains with a 3.46% rise, followed by:

• BSE MidSmall Private Banks Quality Tilt: 2.99%
• Industrials: 2.98%
• Private Banks: 2.63%
• Consumer Durables: 2.46%
• Bankex: 2.40%
• Consumer Discretionary: 2.39%
• Financial Services: 2.34%
• Auto: 2.30%
• Commodities: 2.19%

Market Breadth Remains Strong​

Market breadth remained firmly positive, with 2,968 stocks advancing, 1,295 declining, and 168 remaining unchanged on the BSE.

Investor Wealth Surges by Rs 7.56 Lakh Crore​

Investor wealth saw a sharp increase, rising by Rs 7.56 lakh crore to Rs 4,22,78,312.77 crore (USD 4.50 trillion).

Global Cues Support Market Recovery​

Asian markets ended significantly higher, with Kospi, Nikkei 225, SSE Composite, and Hang Seng indices posting strong gains.

However, European markets traded mostly lower, while US markets had closed higher on Monday.

Crude Oil Volatility and Institutional Flows in Focus​

Crude oil prices remained volatile, with Brent crude rising 1.96% to USD 101.9 per barrel, after earlier witnessing a sharp drop of over 11% following the easing of geopolitical tensions.

On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth Rs 10,414.23 crore on Monday, while Domestic Institutional Investors (DIIs) purchased Rs 12,033.97 crore, helping cushion the market.

Previous Session Recap​

On Monday, markets had witnessed a steep decline, with the Sensex plunging 1,836.57 points or 2.46% to 72,696.39, and the Nifty falling 601.85 points or 2.60% to 22,512.65.

The sharp rebound on Tuesday reflects a recovery in sentiment, although investors continue to monitor developments around the Strait of Hormuz closely.