CHENNAI: Indian stock market indices opened significantly higher amid easing Iran-Israel tensions after US President Trump’s announcement of a ceasefire between the two. BSE Sensex surged around 1.06%, opening at 82,764, up approximately 818–900 points—mirroring reports of an 818-point jump to 82,715 and Reuters data showing 82,764 at 9:17 a.m. IST
NSE Nifty 50 rose about 1.03%, starting near 25,208–25,229, consistent with stated figures
All 13 major sectors opened in the green, with mid- and small-cap indices up ~0.9%.
The primary catalyst for the spike was President Trump’s announcement of a ceasefire between Iran and Israel, easing regional tensions. This led to decline in oil prices, positive Asian market sentiment (MSCI Asia ex-Japan up more than 1.5%)
Month-to-Date and Broader Context
Despite the prior day’s 0.6% dip amid foreign outflows, the Nifty remains 1% up for June, and gains spread across all sectors, with strength in banking, IT, and energy. Mid- and small-cap stocks also rallied ~0.9%.
Nifty and Bank Nifty futures are trading with minor discounts—hinting at measured optimism ahead of the June monthly expiry
Oil Market & Implications
Brent crude dropped to a one-week low at $69.40/barrel, with US WTI at $66.48/barrel after 3% declines. This eased the energy import bill pressure for India and supported market optimism.
Brokerage Goldman Sachs warns of major oil price spikes if the Strait of Hormuz is disrupted, but recent price drops suggest the ceasefire lessened that risk.
Broader oil supply outlook: OPEC+ output ramp-up, US shale resilience, and modest demand could limit upside — brokers see Brent averaging $70–74 in 2025.
Why this matters for India
As far as India is concerned, a lower oil imports help curb inflation. It also supports the rupee and domestic consumption outlook.
Currency & F&O Insights
The rupee saw some relief alongside the oil dip, though data varies. June 24 trades showed stabilization after depreciating earlier due to previous oil price volatility.
