Dalal Street Ends Higher Following Oil-Import Relief, Sensex Rises Over 1,300 Points, Nifty Tests 22,900

The Indian benchmark indices ended higher on Tuesday as the Sensex jumped over 1,372 points to end trade at 74,068, while the Nifty rose more than 445 points to close at 22,957.80, at 3:30 PM.

In the 30-share BSE Sensex, among the top gainers were stocks such as IndiGo, L&T, Eternal, Bajaj Finance and Asian Paints. PowerGrid was the laggard.

In the broader markets, the Nifty Microcap 250 gained 2.88 per cent as volatility remained high. Sectorally, the Nifty Media index gained 3.21 per cent.

Previously, during the early morning session, the BSE Sensex opened the session around 73,900, rallying more than 1,100 points, and the NSE Nifty50 started trading near 22,850, soaring over 300 points, at 9:15 AM.

Equities Rally, Oil Prices Retreat

Global markets rallied after US President Donald Trump signalled that Washington was engaging with Iran, fuelling hopes of a diplomatic breakthrough.

Wall Street reacted sharply, with the S&P 500 and Dow Jones Industrial Average gaining over 1 per cent. Markets reversed earlier losses within minutes of the announcement, reflecting a swift shift in investor sentiment.

Oil prices also declined, dropping from above $112 per barrel to below $100 as concerns over immediate supply disruptions eased.

Oil Slips Below $100, Uncertainty Remains

Brent crude fell below the $100 mark following the announcement, offering some relief to energy-importing economies such as India.

However, analysts cautioned that the correction may not be sustained, with the broader energy market remaining vulnerable.

Estimates cited by the International Energy Agency indicate that global oil supply has fallen by around 11 million barrels per day since the conflict began, making the disruption more severe than previous energy shocks.

Strait Of Hormuz Continues To Pose Risk

The Strait of Hormuz remains a critical concern for global markets, with nearly 30 per cent of the world’s crude oil passing through the route.

Iran has previously warned of potential disruptions in the strait, raising the risk of renewed supply shocks. Any escalation in the region could quickly reverse the recent easing in oil prices.

Experts noted that even if tensions subside, restoring normal supply chains may take time, keeping volatility elevated.

Rally Built On Expectations, Not Certainty

Despite the rebound, market participants remain cautious. Analysts said the rally is largely driven by expectations of de-escalation rather than confirmed developments.

Past trends during the conflict have shown that temporary market recoveries were often followed by renewed volatility after fresh attacks.

There is still no clear evidence of sustained negotiations between the US and Iran, leaving uncertainty over the longer-term outlook.

Implications For India And Global Economy

The developments carry significant implications for India, given its dependence on crude imports from the Gulf region.

Prolonged disruptions could push up fuel prices, widen the current account deficit and add to inflationary pressures. A sustained crisis could also affect global growth, trade flows and currency stability.

While markets have responded positively in the short term, analysts maintain that underlying risks linked to the conflict and energy markets remain firmly in place.