Mumbai

Benchmark equity indices rebounded sharply on Tuesday, rising nearly 2 per cent as investor sentiment improved following a temporary pause in US strikes on Iran’s energy infrastructure.

The BSE Sensex surged 1,372.06 points, or 1.89 per cent, to close at 74,068.45, after climbing as much as 1,793 points during intraday trade. Meanwhile, the Nifty 50 gained 399.75 points, or 1.78 per cent, to settle at 22,912.40.

Among major gainers were Larsen & Toubro, InterGlobe Aviation, Asian Paints, Bajaj Finance, and UltraTech Cement, while Power Grid and State Bank of India were the only stocks that ended lower.

The rally followed an announcement by Donald Trump that the United States would temporarily suspend strikes on Iranian energy facilities and extend the deadline for reopening the strategically important Strait of Hormuz by five days.

Market experts attributed the rebound to easing geopolitical concerns. Analysts noted that early signs of de-escalation in tensions between the US and Iran helped restore investor confidence after the sharp losses in the previous session.

However, they cautioned that such gains may partly reflect short covering and bargain buying rather than a sustained upward trend. Investors often use market corrections as an opportunity to accumulate fundamentally strong stocks at more attractive valuations.

Asian markets also ended higher, with key indices in South Korea, Japan, China, and Hong Kong posting gains. In contrast, European markets were trading mostly lower, while US markets had closed in positive territory on Monday.

Despite the relief rally, experts warned that uncertainty remains, particularly around developments in the Strait of Hormuz, a crucial global shipping route for oil.

Global crude prices also moved higher, with Brent crude rising to around USD 101.9 per barrel, adding another layer of caution for investors.

Foreign institutional investors continued to remain net sellers, offloading equities worth over Rs 10,400 crore on Monday, while domestic institutional investors provided support by purchasing stocks worth more than Rs 12,000 crore.

READ MORE: Col Sofiya Qureshi redefined the role of women in Military

The rebound comes a day after a steep fall, when both indices had recorded significant losses amid heightened geopolitical tensions.