Stock mkts rally for 4th day, yet oil, Iran tensions weigh

IT stocks led the advance, benefiting from valuation comfort & currency tailwinds linked to a weaker rupee

News Service mumbai

Domestic equities extended their nascent recovery on Tuesday, overcoming an uncertain start as elevated crude prices and geopolitical unease surrounding former US President Donald Trump’s deadline to Iran weighed on early sentiment.

The benchmark indices ultimately closed firmly in positive territory, supported by a late-session easing in crude prices and a broadly constructive global backdrop. The BSE Sensex rose 509.73 points to settle at 74,616.58, after swinging sharply through an intra-day range of over 1,400 points. The NSE Nifty advanced 155.40 points to end at 23,123.65.

Gains, however, remained narrowly concentrated. Information technology stocks led the advance, benefiting from valuation comfort and currency tailwinds linked to a weaker rupee. FMCG counters also attracted buying interest on encouraging pre-result commentary. Broader market participation, by contrast, remained subdued, underscoring persistent investor caution.

Market participants are now turning their attention to the RBI’s forthcoming policy decision, where rates are widely expected to remain unchanged. Yet the near-term trajectory, analysts suggest, will be shaped less by monetary policy and more by geopolitical developments and commodity price movements.

“Direction is likely to remain driven by global cues and selective value buying, with focus gradually shifting to the earnings season,” said Vinod Nair of Geojit Investments, cautioning that elevated crude prices and currency volatility could trigger earnings downgrades. Foreign portfolio investor outflows continue to cast a shadow. Having offloaded a record ₹1.22 lakh crore in March, overseas investors have maintained their selling bias into April, particularly in financial stocks.