Market Rebound: Sensex Soars 1,500 Points After Global Relief

Indian stock markets turned sharply higher on Tuesday morning, a day after a steep fall rattled investors. The Sensex jumped more than 1,500 points to cross 74,000, while the Nifty 50 moved close to 22,900 in early trade on 24 March.

In a matter of minutes, nearly ₹5–6 lakh crore was added to investor wealth, taking the total market capitalisation of BSE-listed companies to around ₹420–421 lakh crore.

At 10:30 AM, Sensex remained in the green by 840 points (1.16%).

The quick turnaround reflects how sensitive markets remain to global headlines, especially those linked to geopolitics and commodities.

Why Did Markets Reverse So Quickly?

Global Cues Eased Concerns

The trigger came from overseas. Fresh remarks from US President Donald Trump suggested that Washington and Tehran have been in talks, and that recent conversations were constructive. For markets that had been pricing in further escalation, this was enough to dial down immediate fears.

It does not mean the situation is resolved. In fact, conflicting signals continue to emerge. But for now, investors appear to be reacting to the possibility that tensions may not worsen in the near term.

Positive Global Market Setup

That shift was visible globally before it reached India. Asian markets opened higher across the board, tracking gains on Wall Street from the previous night. By the time Indian markets opened, the tone was already positive.

Short Covering Ahead Of Expiry

There was also a mechanical factor. With the March derivatives expiry nearing, traders who had built short positions during the recent fall seem to be closing them. Such moves often lead to quick spikes, especially when markets rebound after a decline.

Rupee Movement Offered Support

The rupee offered some support. After sliding to record lows in recent sessions, it opened slightly stronger against the US dollar. While the move was not large, it helped steady nerves around currency pressure and foreign flows.

Which Stocks Led The Move?

The gains were not concentrated in just a few names. Buying was visible across sectors. Auto and PSU bank stocks were among the early leaders. Stocks such as Asian Paints, IndiGo, Titan, Larsen & Toubro, and Bharat Electronics rose between 2% and 3% in morning trade.

Broader markets also participated. Midcap and smallcap indices moved up alongside the benchmarks, suggesting that risk appetite improved beyond just large-cap stocks.

The advance-decline ratio remained firmly in favour of gainers, pointing to widespread buying rather than a narrow rally.

Also Read - India Resilient To Global Shocks, Iran Crisis Needs Vigilance: RBI

What Could Shift The Trend Again?

The bigger question now is whether this rebound can hold. Some pressure points are still in place. Foreign institutional investors have been selling Indian equities in recent sessions, and that trend has not clearly reversed.

Oil prices are another variable. After briefly cooling, crude is still trading above the $100 mark. Any further rise could bring back concerns around inflation and growth.

For now, the market seems to be reacting to relief rather than certainty. The direction from here will depend on how events unfold globally and whether investor flows begin to stabilise in the days ahead.

Sources:

Economic Times

Mint