Sensex surges 500 points, then stumbles: What's shaking Dalal Street?

At the opening bell, the BSE Sensex surged more than 500 points, while the NSE Nifty traded at 23,728.30.

However, the gains proved short-lived, with both indices slipping into the red briefly before recovering marginally to trade in positive territory.

Market sentiment remained volatile as investors closely tracked developments in the Middle East.

Oil prices jumped after Israel reportedly instructed its military to intensify operations in Lebanon, raising concerns that a broader regional conflict could derail ongoing ceasefire and diplomatic efforts involving the United States and Iran.

Brent crude futures rose 2.45 percent to $93.35 per barrel, while West Texas Intermediate (WTI) crude futures climbed 2.8 percent to $89.78 per barrel.

Rising crude oil prices are a key concern for India, which imports more than 80 percent of its oil requirements.

Higher crude prices can widen the country's trade deficit, increase inflationary pressures and raise input costs for businesses, often weighing on investor sentiment.

The recent escalation in Middle East tensions has renewed fears of potential disruptions to global energy supplies.

Investors are also monitoring signals from major central banks, including the Reserve Bank of India and the US Federal Reserve, for clues on future interest-rate decisions amid persistent inflation concerns.

Analysts said the market is likely to remain sensitive to geopolitical developments, movements in crude oil prices and foreign institutional investor activity in the coming sessions.