Indian Stock Market Surges Over 1,000 Points Amid Easing Geopolitical Tensions

Market Overview

Mumbai, June 24: The Indian stock market experienced a significant upswing on Tuesday, with the Sensex jumping by over 1,000 points during early trading, while the Nifty index surpassed the 25,250 threshold.

This surge was primarily driven by a sudden reduction in geopolitical tensions in the Middle East, coupled with a notable decline in crude oil prices, which ignited a buying frenzy across various sectors and enhanced overall market sentiment.

The Sensex commenced trading at 82,534.61, surpassing its previous close of 81,896.79, and surged over 1 percent to reach an intra-day peak of 82,937.

Similarly, the Nifty opened robustly at 25,179.90, up from 24,971.90, and achieved a high of 25,287.65.

The broader market indices also participated in the rally, with the BSE Midcap and Smallcap indices each climbing by more than 1 percent.

This positive sentiment was mirrored in market capitalization, as the total value of companies listed on the BSE increased by nearly Rs 5 lakh crore within the initial minutes of trading, rising from Rs 448 lakh crore to approximately Rs 453 lakh crore.

By around 12:35 PM, the Sensex was trading 850.02 points higher at 82,746, reflecting a 1.04 percent increase, while the Nifty rose by 262 points, or 1.05 percent, to reach 25,233.9.

Market analysts credited the unexpected rally to the announcement of a ceasefire between Israel and Iran.

US President Donald Trump announced on his Truth Social platform that both countries had agreed to cease hostilities after 12 days of conflict.

This news significantly bolstered investor confidence across global markets. The ceasefire also led to a sharp decline in crude oil prices, with Brent Crude, which had been around $80 per barrel in the previous session, plummeting nearly 3 percent to trade below $70.

This drop was welcomed by Indian investors, as lower crude prices alleviate inflationary pressures and foster growth in an economy like India that heavily relies on oil imports.

With tensions subsiding, global investors shifted away from safe-haven assets such as gold and the US dollar, returning to equities.

In India, this transition facilitated a recovery in the stock market from recent downturns, resulting in widespread buying across various sectors.

MCX Gold prices fell by over 1 percent during morning trading, and the dollar index also saw a decline of nearly half a percent.