March 10 : Indian shares rose on Tuesday, rebounding from a sharp fall in the previous session and tracking Asian peers after U.S. President Donald Trump said the Middle East war could be “over soon”, pulling down crude prices and easing fears of prolonged supply disruption.
The Nifty 50 , opens new tab rose 0.4% at 24,132.10 and the BSE Sensex, opens new tab added 0.4% to 77,912.50 as of 10:03 a.m. IST.
They rose 1% in early trade before paring some gains.
Fourteen of the 16 major sectors logged gains at the open. The broader smallcaps , opens new tab and midcaps , opens new tab climbed nearly 1% each.
Top lenders and index heavyweights HDFC Bank opens new tab and ICICI Bank, opens new tab climbed 1.4% and 1%, respectively, after falling 3% in the prior session.
“We are seeing a relief rally today after Trump’s hint of the Middle East war ending which is easing worries of oil supply,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial services.
“The recovery today is in line with the global relief rally after Indian benchmarks have fallen nearly 5% since the start of the war. Investors right now are cautiously optimistic,” Khemka said.
The benchmarks posted their sharpest fall in a month on Monday, while the volatility index surged to a 21-month high after crude surged past $100 a barrel amid the expanding U.S.-Israeli war with Iran, raising worries of severe global supply disruptions.
On Tuesday, Brent futures were trading down 4.8% at $94.21 a barrel.
The drop in oil prices also drove paint stocks and airline stocks higher as crude is a major raw material for both.
Budget carrier IndiGo , opens new tab gained 3.2%, while Asian Paints , opens new tab rose 2.5%. They fell 3.8% and 2.6% on Monday.
Other Asian stocks, opens new tab climbed on the day, while U.S. equity futures were muted.
Among individual stocks, Dixon Technologies , opens new tab gained 4.3% on getting government’s approval for a joint venture with a Chinese firm.
Minda Corp , opens new tab climbed 3% on entering a joint venture agreement with UK-based Turntide Drives.
This report is auto-generated from Reuters news service. ThePrint holds no responsibility for its content.
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