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Oil Slide Spurs Indian Market Rebound as Trump Signals Iran Conflict May Ease

The reversal follows a brief crude surge that rattled the rupee, highlighting India’s sensitivity to energy shocks.

Overview

  • Sensex rose 639.82 points to 78,205.98 and Nifty gained 233.55 to 24,261.60, recovering part of Monday’s losses.
  • Brent crude retreated roughly $30 from a near $119.5 peak to the high-$80s/low-$90s after President Trump suggested the fighting could end soon and G7 countries moved to release emergency reserves.
  • The rupee, which had closed at a record low of 92.21 on Monday, firmed modestly to around 92.14–91.83 as oil cooled and risk appetite improved.
  • Foreign investors were net sellers by about ₹6,346 crore on Monday, while domestic institutions bought roughly ₹9,014 crore, reflecting opposing flows during the bout of volatility.
  • Market anxiety eased as India VIX fell sharply from Monday’s spike, though traders cautioned that direction hinges on West Asia developments and crude’s next moves.