Mumbai, March 10 The benchmark equity indices, Sensex and Nifty, rebounded sharply on Tuesday's early trading after two days of a massive decline, following a drop in crude oil prices and a recovery in global markets, amid hopes that the conflict in West Asia could soon conclude.
The 30-share BSE Sensex rebounded by 809.57 points to 78,375.73 in the opening trade. The 50-share NSE Nifty climbed by 252.75 points to 24,280.80.
Brent crude, the global oil benchmark, fell by 5.18 per cent to $93.83 per barrel.
"Comments from Donald Trump suggesting that the US-Israel conflict with Iran could soon conclude have triggered a decline in crude oil prices and the US dollar, helping to restore risk appetite across global markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Among the major gainers from the 30-Sensex companies were InterGlobe Aviation, UltraTech Cement, Asian Paints, Adani Ports, Mahindra & Mahindra, and Titan.
Reliance Industries, Infosys, HCL Tech, and Tech Mahindra were among the laggards.
"US equities staged a strong recovery overnight, with the Dow Jones Industrial Average closing nearly 200 points higher after crude oil prices reversed sharply lower," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
In Asian markets, South Korea's Kospi rebounded sharply by nearly 5 per cent, while Japan's Nikkei 225 jumped 2.5 per cent. The Shanghai SSE Composite index and Hong Kong's Hang Seng index were also trading in positive territory.
The US market ended higher on Monday.
"The panic reaction in crude prices, which took Brent crude to near $120 yesterday, has seen a reversal this morning, plunging Brent crude to $89. Such extreme swings of nearly $30 in one day reflect the huge uncertainty surrounding the impact of the West Asian conflict on global crude supplies. During a war, uncertainty reigns supreme, and that is what we are witnessing now," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,345.57 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 9,013.80 crore.
On Monday, the Sensex tanked 1,352.74 points or 1.71 per cent to settle at 77,566.16, registering its second day of decline. Similarly, the Nifty dropped 422.40 points or 1.73 per cent to end at 24,028.05.