KKN Gurugram Desk | On June 24, 2025, the Indian stock market witnessed an exciting rollercoaster ride, driven by the news of a ceasefire between Iran and Israel. This led to a significant surge in market sentiment, with Sensex reaching its day-high of 83,018 points, showing an impressive gain of 1,100 points at one point. However, as the day progressed, the market cooled off, and by midday, it was trading at 82,094, still holding on to a gain of 198 points. Similarly, Nifty, which had surged by over 300 points earlier, stabilized at 25,054, up by 82 points from the previous close.

Stock Market Surge Due to Geopolitical Developments

The major trigger for this sudden rise was the announcement made by US President Donald Trump, stating that Iran and Israel had agreed to a ceasefire, bringing much-needed relief to global markets. The Indian stock market, particularly the Sensex and Nifty, responded positively to the news, with both indices opening on a strong note, buoyed by the optimism in global financial markets.

The BSE Sensex, which comprises 30 key stocks, reached 83,000 points during the early hours of trading, while the Nifty 50 surged past 25,300 points. This positive momentum continued until mid-morning, when both indices experienced a slight dip, but overall market sentiment remained upbeat.

India’s Major Indices in Focus: Sensex and Nifty

• Sensex: The BSE Sensex, the benchmark index of the Bombay Stock Exchange (BSE), hit a high of 83,018 points, up by more than 1,100 points at one point. However, by 12:15 PM, it cooled off slightly, trading at 82,094 points, marking a net gain of 198 points. Despite this drop, Sensex remained significantly higher than previous levels, indicating a strong rebound in the market.

• Nifty 50: The NSE Nifty 50, another key index, also saw a notable surge. It climbed by 278 points early in the session, reaching 25,250, before it retreated slightly to settle around 25,054 by midday, still holding a gain of 82 points. The market sentiment was buoyed by the optimistic developments in the geopolitical situation and positive cues from global markets.

Global Markets Reacting Positively to the Ceasefire

The global markets also responded positively to the news of a ceasefire agreement between Iran and Israel, which helped ease fears of a prolonged conflict in the Middle East. Asian stock markets were up by 1.5-2%, with countries like Japan, South Korea, and Hong Kong showing significant gains.

In the US, major stock indices such as the Dow Jones, S&P 500, and Nasdaq rose by 0.9-1% overnight. Among the notable gainers was Tesla, which saw a rise of more than 8%, signaling strong investor optimism.

Oil Prices Take a Hit Amid Ceasefire News

One of the most significant impacts of the ceasefire announcement was the sharp drop in crude oil prices. As news of the ceasefire spread, Brent Crude prices fell by 4%, reaching $68.78 per barrel, marking the lowest level in the past 10 days. This is a major relief for oil-importing countries like India, which benefits from cheaper oil prices. The decline in oil prices is expected to ease inflationary pressures and potentially lower costs for Indian consumers and businesses.

Impact on Gold Prices

With the easing of geopolitical tensions, gold prices also saw a drop, reflecting reduced safe-haven demand. Gold fell by 0.6%, trading at $3,349 per ounce. This decline in gold prices is attributed to the reduced market uncertainty, as investors were quick to shift their focus back to riskier assets like stocks. The drop in gold prices is seen as a positive sign for global markets, where investors have shown a preference for more profitable, growth-oriented investments.

Sectoral Performance: Banking, Realty, and Metals Lead the Way

As the markets surged, sectoral indices in India showed strong gains across most sectors. The Bank Nifty, Nifty Realty, Nifty Auto, Nifty Metals, and Nifty Financial Services all saw positive moves, with most of them trading in the green.

• PSU Banks: Stocks of Public Sector Banks (PSU) witnessed a jump of over 2%, reflecting a positive sentiment toward the banking sector, which tends to benefit from economic stability.

• Metals and Realty: The Metals and Realty sectors saw 1% growth, buoyed by optimism in industrial activity and demand for real estate.

• Automobile Sector: The Auto sector also saw gains, driven by increased consumer confidence and positive expectations for the upcoming months.

However, despite the positive movement in most sectors, the Media sector was an outlier, trading in the red, as it failed to keep pace with the broader market rally.

Mid-Cap and Small-Cap Stocks See Gains

In addition to the large-cap stocks, mid-cap and small-cap stocks also performed well, contributing to the overall rally in the market. These stocks, which often experience higher volatility, saw strong upward momentum, signaling a positive outlook for the broader market.

• Adani Ports: One of the biggest gainers on the day was Adani Ports, which surged by 4%, making it the top gainer in the Sensex list. The stock has been consistently performing well and benefitted from the broader market sentiment.

The Road Ahead: Will the Rally Continue?

As the day progresses, the question remains: will this rally continue, or is it just a temporary surge driven by geopolitical developments? The Indian stock market has been highly volatile in recent weeks, and while today’s gains are encouraging, much depends on how the situation in Iran and Israel unfolds in the coming days.

If the ceasefire holds and geopolitical tensions remain subdued, there could be more room for market growth. Moreover, the oil price decline and the potential for inflation control could further stimulate positive sentiment in the market. However, investors need to remain cautious of any unforeseen developments that could reverse the current positive trend.

The Indian stock market has shown strong resilience today, responding positively to the news of a ceasefire between Iran and Israel. With Sensex and Nifty both making solid gains, investor sentiment has improved, and market indices are expected to remain bullish in the short term. The decline in crude oil prices and the drop in gold prices are additional positives for the market, especially for oil-importing countries like India.

However, investors should be aware that the market’s movements are still volatile, and external factors like global economic conditions and further geopolitical events can affect future performance. As always, it is essential to stay updated with market trends and make well-informed investment decisions.