Mumbai, June 24: The Indian stock market witnessed a sharp surge on Tuesday, with the Sensex soaring more than 1,000 points in early trade, while the Nifty reclaimed the 25,250 mark.
A sudden easing of geopolitical tensions in the Middle East and a steep drop in crude oil prices sparked a wave of buying across sectors, lifting overall market sentiment. The Sensex opened at 82,534.61, higher than its previous close of 81,896.79, and rallied over 1 per cent to hit an intra-day high of 82,937.
The Nifty, too, opened strong at 25,179.90, up from 24,971.90, and touched a high of 25,287.65. Broader markets joined the rally, with the BSE Midcap and Smallcap indices climbing over 1 per cent.
The upbeat mood was reflected in market capitalisation as well, with the total value of BSE-listed companies rising by nearly Rs 5 lakh crore in the first few minutes of trading — from Rs 448 lakh crore to almost Rs 453 lakh crore.
By around 12:35 P.M., the Sensex was trading 850.02 points higher at 82,746, up 1.04 per cent, while the Nifty was up 262 points, or 1.05 per cent, at 25,233.9. Market experts attributed the sudden rally to the announcement of a ceasefire between Israel and Iran.
US President Donald Trump shared on his Truth Social platform that both nations had agreed to a complete halt in hostilities after 12 days of conflict. His announcement boosted investor confidence across global markets.
The ceasefire also triggered a sharp fall in crude oil prices — Brent Crude, which hovered near $80 per barrel in the previous session, crashed nearly 3 per cent to trade below $70. This decline came as a relief to Indian investors, since lower crude prices help reduce inflationary pressures and support growth in an oil-import-dependent economy like India.
With tensions easing, global investors moved away from safe-haven assets such as gold and the US dollar and shifted back to equities. In India, this shift helped the stock market recover from recent losses and led to broad-based buying across sectors. MCX Gold prices fell over 1 per cent in morning trade, and the dollar index also declined by nearly half a per cent.
IANS