Markets rebound sharply as easing global tensions lift investor sentiment

Indian equity benchmarks opened Tuesday on a strong note, recovering a large part of the recent losses as global cues turned supportive. The Sensex climbed over 1,100 points in early trade, while the Nifty moved past the 22,800 mark, reflecting a broad-based buying interest across sectors.

The upmove follows a cooling of geopolitical tensions in the Middle East, which had unsettled markets earlier by pushing crude oil prices higher. With concerns around supply disruptions easing for now, oil prices softened, offering relief to import-dependent economies such as India and improving overall risk appetite.

The recent sell-off had been driven by fears of an escalation in conflict and its potential impact on inflation and current account balances. Tuesday’s rebound suggests investors are willing to re-enter equities at lower levels, though the underlying sentiment remains sensitive to global developments.

Market participants remain cautious even as indices recover, with volatility expected to persist in the near term. Much will depend on how geopolitical events unfold and whether stability in crude prices sustains. For now, the bounce indicates that investors are responding quickly to any sign of easing risk, even as the broader environment remains uncertain.