Markets soar: Sensex tops 82,800, Nifty crosses 25,250 on oil cool-off, But defence stocks tumble

Indian equity markets soared to record highs on Tuesday afternoon, reversing a brief cooling-off period and riding a wave of optimism fuelled by falling oil prices and improved global sentiment.

As of 12:34 PM, the BSE Sensex was trading at 82,849.74, up 952.95 points (1.16 per cent), while the Nifty 50 was last seen at 25,190.30, up 218.40 points (0.87 per cent). Earlier in the session, the Nifty 50 index had surged by nearly 300 points, breaching the 25,250 mark for the first time in nearly eight months, since October 2024. The Sensex, too, had climbed over 1,000 points during the day's high.

The rally gained steam as investors cheered a sharp fall in crude prices following a ceasefire in the ongoing conflict that had previously rattled global energy markets. With WTI crude down to $65 per barrel and Brent near $70, concerns over India’s trade deficit and inflation—both sensitive to oil prices—have eased considerably.

Markets had been under pressure recently, with the Nifty ending lower in four of the last five sessions. However, today's rebound signals renewed bullish sentiment.

Sector Highlights:

Banking stocks were among the top gainers, with the Nifty Bank hitting new all-time highs.

Broader markets also continued to outperform, keeping up the momentum seen even during Monday’s weakness.

Defence stocks, which had seen a sharp run-up in recent weeks, turned laggards after former U.S. President Donald Trump made remarks that unsettled the global defence investment outlook. Stocks such as Bharat Dynamics, BEL, Cochin Shipyard, and Garden Reach Shipbuilders traded with cuts.

Markets had opened with modest gains earlier in the day, trailing slightly behind the more bullish signals from GIFT Nifty. But strength quickly returned as investor confidence built up.

Outlook:

With the overhang of geopolitical tensions and oil price volatility temporarily easing, market participants are now shifting focus back to fundamentals and earnings. Analysts suggest that broader markets could continue to lead the rally, although some caution is advised ahead of key global data releases and the upcoming earnings season.