Benchmark indices claw back gains after morning selling pressure

Indian benchmark indices staged a notable recovery from their intraday lows during Tuesday’s session, with the Nifty 50 returning to the 24,000 zone. While the morning trade saw a sharp decline of over 700 points on the Sensex due to escalating friction in the Middle East, buying interest emerged at lower levels to cushion the fall.

Global markets remain on edge as supply concerns regarding the Strait of Hormuz keep Brent crude prices volatile, hovering between $107 and $110 per barrel. Locally, investors are balancing these external shocks against domestic political stability following recent state election results. Historically, Indian markets have shown a tendency to consolidate during the month of May as corporate earnings reports take center stage, shifting the focus from broad sentiment to individual company fundamentals.

Information Technology stocks emerged as a defensive shield during the session, with companies like Infosys and TCS seeing gains of over 1%. This contrarian buying helped offset losses in the banking and financial services sectors, which faced heavy selling pressure. Small-cap and mid-cap indices also showed pockets of strength, suggesting that retail participation remains active despite the headline volatility.

Market experts suggest that the near-term trajectory depends heavily on whether crude oil prices stabilize. Investors are currently adopting a cautious approach, focusing on fundamentally strong businesses in consumption and infrastructure to navigate the current turbulence.