Nifty, Sensex move ahead for a second
Markets gained for the second consecutive session on Tuesday, recovering from last week’s sharp selloff amid supportive global cues. However, the upside remained capped as Brent crude prices remained stable above the $100 per barrel mark.
The Sensex closed 568 points or 0.75 per cent higher at 76,071, while the Nifty 50 closed 172 points or 0.74 per cent higher at 23,581.
The US-Israel conflict with Iran has entered its third week and shows no signs of slowing down, putting energy markets on edge. Brent crude rose nearly 3 percent to near $103 a barrel as the US worked on a plan to move ships through the Strait of Hormuz. The key shipping route, which carries about a fifth of global oil supplies, has been largely disrupted since the beginning of the conflict, raising concerns over a potential blow to global growth.
Sectoral performance was largely positive, with most indices ending in the green. FMCG and IT were notable laggards, falling around 1 per cent each. In contrast, beaten-down metal and realty stocks witnessed strong buying interest, with Nifty Metal and Realty rising 2.8 per cent and 1.8 per cent respectively.
Broader markets also gained momentum, with Nifty Midcap 100 rising 1 per cent and Nifty Smallcap 100 rising 0.7 per cent. Market breadth improved as 2,366 shares advanced compared to 1,891 decliners. India VIX fell 8.4 percent to 19.8, indicating reduced volatility.
Domestic brokerage company MK has warned that if crude oil prices remain around $ 100 per barrel for three to four months, then the market may fall by 10 percent from the current level.
The brokerage said a prolonged conflict could leave a lasting scar on both the US and global economies. Even after hostilities end, it may take two-three months for global energy supplies to return to normal. This could keep inflation high, impact consumer sentiment, impact growth for one to two quarters and disrupt capital flows.
In a separate note, Nuwama flagged rising downside risks to global growth and equities.
The first 10 weeks of 2026 saw the kind of events that typically play out throughout a business cycle – from reflation hopes and trade deals to a major technological shift, and now a full-blown war that is sending supply shocks. The only thing missing is a recession, the brokerage said.
Foreign portfolio investors (FPIs) have sold Indian equities worth more than $7 billion so far in March, putting them on track for their highest monthly outflows since January 2025.
