Markets surge in early trade mirroring sharp rally in global peers, drop in crude oil prices

Mumbai: Stock market benchmark indices Sensex and Nifty bounced back sharply in early trade on Tuesday mirroring a rally in global peers and drop in Brent crude oil prices amid hopes of a potential de-escalation in the Middle East conflict.

The 30-share BSE Sensex jumped 930.7 points to 82,827.49 in early trade. The 50-share NSE Nifty surged 278.95 points to 25,250.85.

From the 30-Sensex firms, Adani Ports, UltraTech Cement, Mahindra & Mahindra, Larsen & Toubro, Axis Bank and Asian Paints were among the biggest gainers.

NTPC and Bharat Electronics were the laggards.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were trading sharply higher.

US markets ended in the positive territory on Monday.

Global oil benchmark Brent crude dropped 2.87 per cent to USD 69.43 a barrel.

"The dramatic developments in the West Asia culminating in US President Trump’s announcement of a ceasefire indicate that the worst of the conflict is over. The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,874.38 crore on Monday, while Domestic Institutional Investors (DII) bought stocks worth Rs 5,591.77 crore, according to exchange data.

"Markets appear to be shifting towards a bullish bias, supported by a drop in WTI oil futures to $66.50, hinting at potential de-escalation in Middle East tensions," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, in his pre-opening market commentary.

On Monday, the 30-share BSE Sensex ended with a loss of 511.38 points or 0.62 per cent at 81,896.79. The Nifty dropped 140.50 points or 0.56 per cent to 24,971.90.