Sensex, Nifty rally over 1% each after Trump announces Israel-Iran ceasefire

By | June 24, 2025
Sensex, Nifty rally on Trump ceasefire announcement

Indian stock markets witnessed a strong surge on Monday. Both the Sensex and Nifty climbed over 1%, driven by optimism over a ceasefire between Israel and Iran. Former U.S. President Donald Trump announced the truce, which calmed investor fears and lifted global sentiment.

Markets Cheer Geopolitical Relief

The Sensex gained more than 940 points, touching 82,800, while the Nifty rose by nearly 270 points to close around 25,250. This was the first market session following Trump’s surprise statement. He said both nations had agreed to a “complete and total ceasefire” after nearly two weeks of conflict.

Although Israel and Iran have not officially confirmed the agreement, investors welcomed the news. The Middle East tensions had rattled global markets in recent weeks. Any sign of de-escalation brought immediate relief.

Crude Oil Falls, Boosting Equities

The ceasefire news also impacted global oil markets. Brent crude dropped over 4%, slipping below $70 per barrel. WTI crude fell to $66–67. India, being a large oil importer, benefits when oil becomes cheaper.

Lower oil prices reduce fuel costs, ease inflation pressure, and help improve the fiscal situation. Indian equities reacted positively to this change.

“Markets gained due to easing global tensions and falling oil prices,” said Arvind Sharma, an equity strategist based in Mumbai. “This improves India’s economic outlook, especially as crude costs weigh heavily on our import bill.”

Sectors and Stocks That Gained

The rally spread across sectors. Most industry groups closed in the green. Key gainers included:

  • Oil marketing companies like IOC, BPCL, and HPCL rose 3–5%. They are expected to gain from cheaper crude inputs.
  • Airlines such as IndiGo and SpiceJet surged 4–6%, thanks to the expected fall in aviation fuel prices.
  • Adani Ports jumped over 4%. It operates the Haifa Port in Israel, which had faced security risks during the conflict.
  • Banking, IT, and auto stocks also posted solid gains, tracking broader market optimism.

However, not all sectors joined the rally. Oil producers like ONGC and Oil India fell 2–4%. These firms earn less when crude prices drop, which impacts their revenue and profits.

Global Markets Rise in Sync

The optimism wasn’t limited to India. Asian markets like Nikkei, Hang Seng, and Kospi also saw gains. European and U.S. stock futures traded higher. The global risk appetite improved as tensions cooled.

The U.S. dollar weakened, and bond yields dropped, signaling investor confidence. Some traders are also expecting the U.S. Federal Reserve to cut interest rates if inflation eases further. Falling crude prices could help lower global inflation.

Cautious Optimism Remains

Despite the positive mood, analysts advised caution. The ceasefire is not yet officially confirmed by both Israel and Iran.

“Today’s gains are strong, but the situation is still developing,” said Kavita Mehra, a senior economist in Delhi. “If the truce breaks, markets may face renewed volatility.”

India’s Union Budget is due next month. In addition, the Q1 FY26 earnings season begins soon. Both events could impact market direction in the coming weeks.

FIIs Resume Buying

Foreign Institutional Investors (FIIs) returned to Indian equities after several days of selling. On Monday, they purchased ₹2,300 crore worth of stocks, according to provisional data. Their return lifted sentiment further.

FIIs play a crucial role in Indian markets. Their buying or selling often determines the market’s short-term trends. Monday’s inflow reflects renewed confidence in Indian equities.

Key Technical Levels

Experts have updated market levels to watch:

  • For Nifty, resistance lies near 25,400–25,500, while support is around 24,800.
  • For Sensex, resistance is expected near 83,200, with support near 81,600.

If global sentiment remains positive and oil stays low, the rally may continue. However, any fresh tension or weak corporate earnings could trigger corrections.

Conclusion

The Indian stock markets rallied sharply on hopes of peace in the Middle East. Trump’s announcement of a ceasefire between Israel and Iran calmed fears of a wider conflict. Falling oil prices added to the cheer, improving India’s inflation outlook and boosting investor sentiment.

Sectors like oil marketing, aviation, and ports led the rally, while oil producers saw some weakness. Global cues also remained strong, with investors buying into risk assets again.

Still, traders are keeping an eye on official confirmations of the ceasefire. They are also watching domestic developments like the budget and earnings season. If stability continues, Indian equities may extend their gains in the short term.