Indian benchmark indices continued to rally strongly on Tuesday, with the Nifty 50 and BSE Sensex both jumping over 1 percent. The Nifty 50 Index climbed over 200 points as global risk sentiment improved on the back of reports that a ceasefire agreement between Israel and Iran had been reached. This positive geopolitical development along with the declining crude oil prices and persistent FII inflows pushed up the market across the sectors.
Ambitious foreign investors poured into our stock market. In India, the all-important Nifty 50 index blasted through the key psychological 25,250 level, reaching a new 2025 high of 25,276.45 in early trade on July 5. At 11:15 AM IST, the Nifty was at 25,263.35, a gain of 291.45 points (1.16%) over its last close of 24,971.90. The wider BSE Sensex showed similar strong upward momentum, surging more than 950 points to trade at 82,847.3, a net gain of 950.51 points or 1.16% over its previous closing of 81,896.79.
The other biggest driver is relief in global geopolitical tensions, especially the reported ceasefire between Israel and Iran. This de-escalation soon translated into a crude oil price crash, which is a tremendous additional blessing for India, whose energy dependence is growing. Brent crude futures fell sharply below $70 per barrel as concerns xabout inflationary pressures gave way to a healthy economic future. At the time of writing, Brent crude was trading around $69.70 a barrel, down by more than a third.
Sectoral Performance and Key Movers The market breadth was extremely positive, with all but 2 sectoral indices trading in the green. The PSU Bank index was at the forefront of the rally, rising more than 2%, indicating strong buying interest in public sector lenders. Among other major gainers Auto, Metal, Financial Services, and Realty sectors all rose by more than 1%.
Among the Nifty 50 top gainers, shares of Adani Ports & SEZ rallied over 4%, continuing its upward momentum driven by positive sentiment in logistics. UltraTech Cement, L&T, Mahindra & Mahindra (M&M), and Tata Motors were also among the top performers, reflecting broad-based buying across infrastructure, manufacturing, and automotive segments. Oil Marketing Companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) logged huge gains, each of them surging 3-4% owing to dropping crude prices.
Some stocks rallied defying the trend. NTPC and IndusInd Bank were among the top five Sensex losers, while ONGC, Bharat Electronics (BEL), and Tata Consumer faced heavy selling on the Nifty. The IT sector harking back to the negative cues from Accenture’s weak guidance at the start of the week, prompting the investors to cut their positions in some major IT scrips.
The Indian Rupee appreciated sharply against the US Dollar in line with positive global sentiment and lower crude oil prices. The Rupee rose a significant 65 paise in early trade, opening at 86.07 against the US Dollar and trading around 86.13 as of reporting. This dollar appreciation has the effect of soothing the economy by reducing imported inflation.
Also check:- Indian Markets Tumble as Geopolitical Tensions Reignite, Nifty Slips Below 25,000
Foreign Institutional Investors (FIIs) have taken a mixed trend in the past few days. While they net sold equities worth ₹1,874.38 crore on a net basis on Monday (June 23), their continued net inflow for the fourth week in a row before that had been an unmistakable indication of increasing confidence in India’s growth story from the global investor community. Domestic Institutional Investors (DIIs) continued to be net buyers on Monday, pumping in ₹5,591.80 crore, offering much-needed support to the market.
Asian shares mostly surged in sync with Indian markets while the US dollar fell, responding cheerily to ceasefire news. Futures on all four of the US main indices indicated a strong opening. Continuously falling below the 15 level, the India VIX, the fear gauge, suggested a conducive environment for a bullish stance.
Analysts recommend that long-term momentum will be subject to the ceasefire remaining intact and more favorable macroeconomic indicators continuing to filter in from India and abroad. For today, Indian equities are very much under the spell of optimism, rejoicing over a significant de-escalation in global geopolitical tensions.
