Markets opened with strong gains on Tuesday morning following President Trump’s announcement of a ceasefire between Israel and Iran, with the Sensex climbing 788.32 points to 82,685.11 and the Nifty rising 235.95 points to 25,207.85 by 9.35 AM.

The market rally was triggered by the de-escalation of geopolitical tensions after what President Trump termed “The 12-Day War” came to an end. WTI crude oil prices dropped sharply to $66.50 per barrel, providing additional support to equity markets as concerns over Middle East tensions subsided.

“Markets appear to be shifting towards a bullish bias, supported by a drop in WTI oil futures to $66.50, hinting at potential de-escalation in Middle East tensions,” said Prashanth Tapse, Senior VP Research at Mehta Equities Ltd. The positive sentiment was reflected in broad-based buying across most sectors.

Foreign Institutional Investors turned net buyers on June 23, purchasing equities worth ₹5,591 crores, while Domestic Institutional Investors remained net sellers at ₹1,874 crores. This institutional buying provided crucial support to market sentiment amid recent volatility.

Leading the gainers on the Nifty50 was Adani Ports, which surged 4.41 per cent to ₹1,414.60, followed by Shriram Finance gaining 2.66 per cent to ₹679.25. Jio Financial Services advanced 2.54 per cent to ₹300.60, while UltraTech Cement rose 2.33 per cent to ₹11,716.00. Mahindra & Mahindra completed the top five gainers with a 2.17 per cent increase to ₹3,202.90.

The small finance banking sector witnessed significant gains after the Reserve Bank of India eased priority sector lending norms. “Small finance banks like Equitas gained 4.73 per cent, ESAF surged 3.80 per cent, and Ujjivan climbed 0.17 per cent after the RBI eased priority sector lending norms,” noted Tapse.

Energy stocks faced pressure as crude oil prices declined. NTPC emerged as the biggest loser, falling 3.26 per cent to ₹321.75, while ONGC dropped 2.00 per cent to ₹246.35. These losses reflected the impact of lower crude prices on oil marketing companies and power generation companies.

“The dramatic developments in West Asia culminating in President Trump’s announcement of ceasefire indicate that the worst of the conflict is over,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy.”

Technical analysts remained optimistic about the market’s near-term prospects. “Markets likely to open higher on June 24 as geopolitical tensions ease after Iran–Israel ceasefire,” said Aakash Shah, Technical Research Analyst at Choice Broking. “Gift Nifty indicates a strong start, trading 1 per cent higher at 25,212, offering relief after recent volatility.”

The banking sector showed resilience with Bank Nifty recovering from recent lows. “Nifty Bank recovered sharply from intraday lows to close just above the 56,000 mark at 56,059.35,” Shah observed. “The rebound reflects strong buying interest at lower levels, suggesting underlying strength.”

Commodity markets witnessed high volatility following the geopolitical developments. “Gold and silver prices showed very high price volatility on Monday and gained in the early trading sessions but unable to sustain and give up all its gains as geopolitical tensions cooled,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

The crude oil market experienced significant pressure from the ceasefire announcement. “Both benchmarks slipped to one week lows and slipped below $70 a barrel,” Kalantri noted. “If Israel and Iran are agreed for the ceasefire could further push oil prices lower in the upcoming sessions.”

Individual stock movements reflected sector-specific developments. Zee Entertainment surged 12.46 per cent on strategic updates, while Zen Technologies hit the upper circuit after acquiring TISA Aerospace. ITD Cementation stabilized following orders worth ₹960 crores.

“Paints, adhesives, tyres and OMCs will respond positively to the sharp cut in crude,” Vijayakumar explained. “ONGC and OIL will be on the back foot. Investors can focus on reasonably valued domestic cyclicals like financials, aviation, telecom and capital goods where safety is higher.”

Technical levels remained crucial for sustained momentum. “Nifty which has been stuck in the 24500-25000 range will now decisively break out on the upside,” Vijayakumar predicted. “But whether it will sustain at higher levels will depend on developments on the trade front.”

Market participants are now focusing on upcoming trade negotiations, with the pause on reciprocal tariffs ending July 9. “Since the pause on the reciprocal tariff ends on July 9th, bilateral trade agreements have to happen before that,” Vijayakumar noted. “Therefore, markets are likely to respond to developments on the trade front.”

The morning session’s strong performance suggests that investors are optimistic about the resolution of geopolitical tensions, though traders remain cautious about sustaining gains at higher levels amid ongoing global uncertainties.

Published on June 24, 2025