Sensex gains 544 pts, Nifty ends near 24,000 as softer crude lifts market for third day, metal stocks lag

Indian equity benchmarks extended a three-session rally on Tuesday, driven by a preliminary US-Iran peace accord that reduced geopolitical risk and energy supply disruption concerns. Lower crude oil prices emerged as the primary tailwind, benefiting energy-intensive sectors and improving margin expectations across the broader market. The Sensex and Nifty both advanced, reflecting broad-based optimism in risk sentiment.

The de-escalation in Middle East tensions represents a meaningful shift in macro uncertainty. However, this relief came at the expense of materials and metal stocks, which lagged the broader index. The inverse relationship highlights a sectoral rotation: lower energy costs support general consumption and industrial activity, but commodity-linked equities face headwinds from weakening metal prices typically associated with lower geopolitical premium and reduced demand signals.

Crude's decline to lower levels provides measurable tailwinds for downstream energy consumers and transportation-dependent sectors while simultaneously pressuring upstream and commodity exporters. The three-day streak suggests market participants are repricing tail risks and favoring cyclical exposure in a lower-volatility environment.

Sector implication: The divergence between energy beneficiaries and materials laggards reflects classic risk-on rotation mechanics. Investors should monitor whether this peace accord holds durability, as any reversal would likely reverse both the energy relief and metals underperformance. The broader correlation to global sentiment remains elevated.