Indian benchmark indices opened higher on Tuesday with NIFTY50 rising up to 0.4% to 23,734 and Sensex gaining 0.5% or 340 points to 75,656. The positive opening follows a largely unchanged close in the previous session, with GIFT NIFTY futures suggesting a positive start at 23,708 compared to the previous close of 23,649.95. The domestic market sentiment remains supported by strong buying activity from both foreign and domestic institutional investors during Monday's trading session.
US President Donald Trump announced he has called off a planned military strike on Iran after requests from leaders of Qatar, Saudi Arabia and the UAE. This decision has eased concerns over immediate disruption to global crude supply, with Brent crude for July falling over 2% to $109.15 per barrel and WTI declining 1.27% to $107.28. Asian markets moved higher following the oil price easing, with Japan's Nikkei rising 0.68% and Topix gaining 1.16%, while Australia's ASX 200 advanced 1.08%. However, South Korea's Kospi fell 1.06%, and Hong Kong futures traded below the last close of the Hang Seng index.
NIFTY IT emerged as the top gainer, rising 3.51%, followed by FMCG, PSU Bank, Oil & Gas and Media indices posting gains. Pharma, Consumer Durables and Defence also traded in positive territory with moderate upside, while Nifty Realty and Nifty Metal were the only sectors in the red, declining 0.11% and 0.09% respectively. Among individual stocks, Coforge rose 4.90%, Infosys gained 4.60% and Persistent Systems advanced 4.31% among top IT performers. BPCL rose 2.87%, while HPCL and IOC gained 2.33% and 2.31% respectively, with oil marketing stocks outperforming the broader market.
The NIFTY50 closed flat with a 6-point gain after recouping over 340 points from the intraday low levels, managing to defend the 23,250–23,300 support zone as highlighted previously. The chart structure remains neutral with a positive bias if the index manages to close above the 23,700 levels. NIFTY50 total derivatives open interest surged 215.93% since the previous expiry despite the index declining 8.62%, with call open interest rising 208.23% and put open interest climbing 242.59%. The 23,700 strike emerged as the strongest support zone in NIFTY weekly options data, with fresh put additions remaining highest at this strike, while the 24,000 strike continues to show strong resistance positioning.
Trading is likely to remain volatile due to weekly expiry dynamics and elevated VIX levels, with expiry-related positioning expected to drive intraday swings. The rupee strengthened by over 5 paise after opening, recovering from a record low of 96.40 per dollar, though it has depreciated 7.1% so far in 2026, making it the worst-performing Asian currency this year. Petrol and diesel prices were increased by about 90 paise per litre, marking the second hike in less than a week, with petrol rising to ₹98.64 per litre and diesel to ₹91.58 per litre in Delhi. Rising bond yields and a second fuel price hike remain key factors for the session, while institutional flows stayed supportive with FIIs continuing as net buyers.
