Indian stock markets kicked off June 24, 2025, on a strong note, reacting positively to geopolitical developments. A ceasefire announcement by US President Donald Trump between Iran and Israel has defused tensions in the Middle East, lifting investor sentiment across the globe.
On June 24, 2025, the BSE Sensex jumped about 818 points to open at 82,715, representing a gain of 1.06%. The NSE Nifty 50 surged by 1.03% to start around 25,208, with actual figures ranging between 25,208 and 25,229. This gains momentum from positive cues following the de-escalation of hostilities in the Middle East.
All 13 sectoral indices on the NSE opened in the green, and mid-cap and small-cap indices posted gains of approximately 0.9%. The bullish trend was not limited to India, Asian equity markets also rallied, with the MSCI Asia ex-Japan index climbing over 1.5%.
The announcement of a ceasefire between Iran and Israel by President Trump was the key catalyst behind the market rally. The declaration soothed nerves following weeks of volatility triggered by escalating conflict concerns in the Middle East. Traders welcomed the development as it reduced the immediate risk premium in global markets.
A key factor supporting equity optimism was the sharp decline in global crude oil prices, which tend to significantly influence India's inflation and fiscal outlook due to the country’s reliance on oil imports.
The crude oil market reacted swiftly to the ceasefire news. Brent crude dropped to a 1-week low of $69.40 per barrel, while US West Texas Intermediate (WTI) fell to $66.48 per barrel, representing nearly a 3% decline. The reduction in oil prices offers relief to India’s energy import bill.
For an economy like India’s, stability in oil prices is crucial. Lower oil prices help moderate wholesale and retail inflation, reduce current account pressure, and support consumption. These factors collectively improve macroeconomic stability and aid central bank policy flexibility.
Additionally, when geopolitical tensions ease, FIIs and global investors are more inclined to allocate capital towards emerging markets like India, which boosts both equity flows and the rupee.
Despite having dropped 0.6% on the previous session due to foreign institutional outflows, Nifty has remained resilient, notching up a 1% rise month to date as of June 24. Gains have been broadly based across sectors, with particular improvements seen in banking, IT, and energy-related stocks.
Mid- and small-cap stocks extended their recent uptrend, adding about 0.9%, showing retail and domestic investor confidence in broader economic and corporate fundamentals.
Other Asian equity markets were buoyant, with indices across China, South Korea, and Singapore opening higher. The MSCI Asia ex-Japan index's 1.5% gain suggests strong global investor appetite returning to risk assets as geopolitical conditions stabilise, at least temporarily.
US markets had already priced in optimism overnight following Trump's ceasefire declaration, and that momentum rolled over into Asia and Europe on June 24.
Indian equity markets surged on June 24, 2025, propelled by the easing of geopolitical tensions after US President Trump's ceasefire declaration between Iran and Israel. The relief rally was visible across indices, sector-wide performance, and oil prices.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 24, 2025, 3:30 PM IST
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