Mumbai

Indian benchmark equity indices recovered strongly on Tuesday, reversing a portion of the previous session's losses, as improving global sentiment, easing tensions in West Asia and softer crude oil prices boosted investor confidence.

The BSE Sensex advanced 394.50 points, or 0.54 per cent, to close at 73,918.76. During intraday trade, the 30-share benchmark surged as much as 511.15 points to touch 74,035.41.

Similarly, the NSE Nifty50 ended the session 119.10 points, or 0.52 per cent, higher at 23,242.10 after rising to an intraday high of 23,279.40, up 156.40 points from the previous close.

The recovery came a day after domestic markets witnessed steep declines amid geopolitical concerns and rising crude oil prices.

Banking and financial stocks led Tuesday's gains. InterGlobe Aviation, State Bank of India, ICICI Bank, Axis Bank, Bajaj Finance and Asian Paints emerged among the top performers on the Sensex.

On the other hand, Titan, NTPC, Power Grid and Tech Mahindra finished in negative territory.

A key factor supporting the rebound was the decline in global crude oil prices. Brent crude, the international benchmark, fell 1.66 per cent to trade at USD 92.69 per barrel, offering relief to import-dependent economies such as India.

Asian markets also staged a comeback after the previous session's sell-off. South Korea's Kospi rallied 8.18 per cent, Japan's Nikkei 225 climbed 2.17 per cent, while China's Shanghai Composite gained 1.28 per cent. Hong Kong's Hang Seng, however, ended lower.

European markets were trading in positive territory during the latter half of the Indian trading session.

Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities were witnessing a modest recovery after the recent correction, aided by a pause in hostilities between Israel and Iran and easing oil prices.

However, he cautioned that investor sentiment remained sensitive due to persistent foreign institutional investor (FII) outflows and elevated bond yields, which continue to reflect concerns surrounding global macroeconomic developments.

Ponmudi R, Chief Executive Officer of Enrich Money, said easing geopolitical tensions had improved appetite for risk assets worldwide.

He noted that softer crude prices, renewed optimism surrounding technology and artificial intelligence sectors, and improving global market conditions contributed to the rebound in Indian equities.

Meanwhile, data from the exchanges showed that foreign institutional investors remained net sellers, offloading equities worth Rs 5,555.67 crore on Monday.

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On the previous trading day, the Sensex had fallen 719.08 points to settle at 73,524.26, while the Nifty had dropped 243.70 points to close at 23,123.