Sensex closes 287 points higher, Nifty above 24,300; IndiGo up 2%

The BSE Sensex gained 286.98 points, or 0.37%, to close at 77,656.09, while the Nifty 50 advanced 115.50 points, or 0.48%, to end at 24,334.55.

In Short

• Crude oil prices fell over 2.7% easing energy cost concerns
• Rupee strengthened 0.35% to 95.41 against US dollar
• Healthcare and financial sectors led gains; metal sector declined

Benchmark indices ended higher on Tuesday, helped by a decline in crude oil prices after the much-anticipated US sanctions against Iran fell short of market expectations. The easing in energy prices offered some relief to investors, although persistent geopolitical tensions and elevated bond yields continued to keep the market cautious.

The BSE Sensex gained 286.98 points, or 0.37%, to close at 77,656.09, while the Nifty 50 advanced 115.50 points, or 0.48%, to end at 24,334.55.

Brent crude fell 2.77% to $89.66 a barrel, while WTI crude declined 2.86% to $82.58. The pullback in oil prices came even as tensions in the Middle East remained elevated. For India, lower crude prices provided some relief given the country's dependence on imported oil.

"The much-anticipated US sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks," said Vinod Nair, Head of Research, Geojit Investments Limited. "This relief in energy costs aided a moderately positive close today on the monthly expiry day."

The rupee also strengthened 0.35% against the US dollar to 95.4125, supported by the pullback in oil prices. The currency remained in a narrow range through much of the session as central bank intervention helped limit losses.

Sectoral performance was largely positive, with Nifty Healthcare emerging as the top performer, rising 1.09%. Nifty MidSmall IT & Telecom gained 1.32%, while Nifty Financial Services Ex-Bank rose 0.90%.

Nifty Consumer Durables added 0.93%, Nifty MidSmall Healthcare gained 0.77%, Nifty PSU Bank rose 0.75% and Nifty Pharma advanced 0.85%. Nifty IT gained 0.57%, while Nifty Financial Services 25/50 rose 0.35%.

Nifty Auto gained 0.40%, Nifty FMCG rose 0.38%, Nifty Media advanced 0.42%, Nifty Oil & Gas added 0.16% and Nifty Realty gained 0.08%. Nifty Private Bank rose 0.20%.

Nifty Metal was the only major sectoral index to end lower, slipping 0.07%.

Nair said investors were rotating towards defensive and domestic-oriented sectors. "Outperforming the broader market, healthcare and financial sectors gained as investors rotated into defensive and domestic-oriented sectors with signs of some stability in domestic bond market," he said.

The broader market also participated in the gains. Nifty 100 rose 0.51%, Nifty 200 gained 0.52% and Nifty 500 advanced 0.42%.

Nifty Midcap 50 added 0.44%, while Nifty Midcap 100 gained 0.54%. Nifty Smallcap 100, however, slipped 0.10%.

India VIX, the market's volatility gauge, fell 3.40% to 11.13, signalling some easing in near-term market nervousness.

IndiGo was the top gainer among the stocks tracked, rising 2.05%. Adani Ports gained 1.19%, Infosys rose 1.15%, Trent advanced 1.10% and Titan added 0.98%.

M&M gained 0.84%, Tech Mahindra rose 0.76%, LT added 0.76%, ITC climbed 0.74%, BEL advanced 0.69% and ICICI Bank gained 0.64%.

On the other side, Eternal fell 0.85%, HCLTech declined 0.68%, Power Grid slipped 0.53%, Bajaj Finserv fell 0.29% and HDFC Bank declined 0.26%. Hindustan Unilever was down 0.15%.

Nair said investors are now looking towards upcoming inflation data and comments from the US Federal Reserve Chair for greater clarity on the inflation and interest-rate outlook.

"However, near-term cautiousness is expected to continue for Indian equities as unresolved US-Iran tensions keep oil prices and bond yields relatively elevated, leaving investors sensitive to sudden shifts in the Middle East geopolitical landscape," Nair said.

The market will therefore continue to track crude oil prices, developments in the Middle East, domestic inflation data and global interest-rate signals for the next direction.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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