Markets extended gains for a second straight session on Tuesday, recovering from last week’s sharp selloff amid supportive global cues. However, the upside remained capped, as Brent crude prices held firm above the $100-per-barrel mark.
The Sensex rose 568 points, or 0.75 per cent, to close at 76,071, while the Nifty 50 gained 172 points, or 0.74 per cent, to settle at 23,581.
The U.S.-Israeli conflict with Iran entered its third week with little sign of easing, keeping energy markets on edge. Brent crude climbed about 3 per cent to hover near $103 per barrel, even as the U.S. worked on a plan to escort ships through the Strait of Hormuz. The key shipping route, which carries nearly a fifth of global oil supplies, has remained largely disrupted since the onset of the conflict, raising concerns over potential shocks to global growth.
Sectoral performance was largely positive, with most indices ending in the green. FMCG and IT were the notable laggards, declining about 1 per cent each. In contrast, beaten-down metal and realty stocks saw strong buying interest, with the Nifty Metal and Realty rising 2.8 per cent and 1.8 per cent, respectively.
Broader markets also rose, with the Nifty Midcap 100 gaining 1 per cent and the Nifty Smallcap 100 advancing 0.7 per cent. Market breadth improved, as 2,366 stocks advanced compared to 1,891 declines. The India VIX fell 8.4 per cent to 19.8, indicating easing volatility.
A prolonged conflict could leave lasting scars on both the U.S. and the global economy, the brokerage said. Even after hostilities cease, global energy supplies may take two-three months to normalise. This could keep inflation elevated, dent consumer sentiment, weigh on growth for one to two quarters, and disrupt capital flows.
Nuvama, in a separate note, flagged rising downside risks to global growth and equities.
The first 10 weeks of 2026 have seen events that typically play out over an entire business cycle — from reflation hopes and trade deals to a major technological shift, and now a full-blown war triggering a supply shock. The only missing piece is a recession, the brokerage said.
