Mumbai, India – Indian equity benchmark indices witnessed a robust opening on Tuesday, June 24, 2025, propelled by a significant de-escalation in Middle East tensions following an announced ceasefire between Iran and Israel. The Nifty50 index breached a key psychological level, rallying past the 25,200 mark in early trade, while the BSE Sensex posted gains exceeding 900 points, mirroring a broader rally across Asian markets.
At 9:17 AM local time, the Nifty50 was trading firmly at 25,239.05, marking a gain of 267 points, or 1.07%, from its previous close. Simultaneously, the BSE Sensex soared to 82,810.81, reflecting a substantial rise of 914 points, an increase of 1.12%. The early momentum underscored strong investor confidence buoyed by improved global sentiment.
Geopolitical Development Sparks Optimism
The primary catalyst for the morning’s market surge was the announcement by US President Donald Trump of a ceasefire agreement between Iran and Israel. This development was widely interpreted by global markets as a significant step towards easing tensions in a region critical to global energy supplies and overall geopolitical stability. The news helped temper fears of wider conflict that had weighed on investor sentiment in recent weeks.
The positive reaction in India was aligned with trends seen across broader Asian markets, where equities also recorded gains. Investors worldwide responded favourably to the prospect of reduced uncertainty, shifting focus back to economic fundamentals and growth prospects after a period dominated by geopolitical risks.
Impact on Global Commodities
One of the most immediate and tangible effects of the ceasefire announcement was a sharp decline in crude oil prices. With the perceived risk of supply disruptions in the Middle East significantly reduced, oil benchmarks fell notably. Prices dropped below $70 per barrel, a level not consistently seen when tensions were high. This downturn in energy costs is typically viewed positively by importing nations like India, potentially easing inflationary pressures and reducing input costs for various industries.
The fall in oil prices further boosted the appeal of risk assets, including equities. Lower energy costs are generally favourable for economic activity, supporting consumer spending and corporate profitability, factors that contribute to positive market sentiment.
Market Breadth and Investment Flows
The optimistic mood translated into a broader increase in wealth for investors. The combined market capitalisation of all companies listed on the BSE saw a significant uptick, rising by ₹4.43 lakh crore in early trade. This surge pushed the total market capitalisation to a remarkable ₹452.25 lakh crore, indicating that the rally was not confined to a few large-cap stocks but reflected a more widespread positive sentiment across the market.
Analysis of recent fund flows also provided context for market movements. Data from the end of the previous trading week indicated divergent activity between foreign and domestic investors. On Friday, foreign portfolio investors (FPIs) were net sellers, offloading shares worth Rs 1,874 crore. In contrast, domestic institutional investors (DIIs) provided strong support to the market, purchasing shares valued at Rs 5,592 crore on the same day. This divergence suggests DIIs have continued to act as a significant counterbalancing force to FPI outflows, underpinning market stability.
Looking Ahead
The early trading activity on June 24, 2025, underscores the market’s sensitivity to global geopolitical developments. The positive reaction to the potential easing of Iran-Israel tensions, coupled with the resulting decline in oil prices, has created a favourable environment for risk assets. While market participants remain watchful of the sustainability of the ceasefire and other global economic indicators, the day’s strong performance highlights the significant impact of reduced uncertainty on investor confidence and capital flows into emerging markets like India.
