Indian shares recovered on Tuesday, after two sessions of sharp declines, as oil prices eased due to a lack of further escalation in Middle East tensions.
The rupee was stronger on Tuesday after it rose 0.28% to 71.7275 against the dollar.
The Sensex rose over 500 points to 41,204 while Nifty regained 12,150. Among the Sensex 30 stocks, IndusInd Bank, Bajaj Finance, UltraTech Cement, HDFC Bank, Tata Steel, Asian Paints, RIL, Axis Bank, HDFC and ICICI Bank were up between 1.5% and 2.5%.
At 9.30 am, the BSE benchmark Sensex was trading 481 points higher at 41,158.19. The NSE barometer Nifty50 rose 140 points to 12,132.05. Broader market indices also gained, with Nifty Smallcap index rising 1.74 per cent to 5,931 while Nifty Midcap advancing 1.39 per cent to 17,139.
Oil surrendered some hefty gains as many doubted Iran would strike back in a way that would disrupt supplies, and its own crude exports.
Brent crude fell 44 cents to $68.47 a barrel by 0200 GMT while U.S. West Texas Intermediate (WTI) crude was at $62.86 a barrel, down 41 cents.
The price of oil surged in the last two trading sessions after a drone strike by the U.S. in Bhaghdad killed top Iranian military commander Qassem Soleimani, sparking fears of an escalation in conflict and supply disruptions in the region.
The spike in crude prices roiled Indian equities, with the Nifty falling just over 2% on Monday, recording its worst intraday fall since Sept. 3.
BSE lost 3.09 trillion rupees in market value, while NSE lost 3.05 trillion rupees in market value, as per Refinitiv Eikon data.