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The Indian stock market witnessed strong gains in the morning session on Tuesday; Know key reasons behind the surge
Why is Market Rising Today?
Why Is Market Rising Today? The Indian stock market witnessed strong gains in the morning session on Tuesday, June 24, with the Sensex soaring over 900 points and the Nifty 50 reclaiming the 25,250 mark in early trade.
The Sensex opened at 82,534.61, significantly higher than its previous close of 81,896.79, and surged over 900 points—more than 1 per cent—to hit an intraday high of 82,835.39. Meanwhile, the Nifty 50 opened at 25,179.90, up from its previous close of 24,971.90, and climbed over 1 per cent to touch an intraday high of 25,250.85.
Broad-based buying was seen across the market, with the BSE Midcap and Smallcap indices also rising more than 1 per cent each.
The total market capitalisation of all BSE-listed companies jumped to nearly Rs 452 lakh crore from Rs 448 lakh crore in the previous session, adding around Rs 4 lakh crore to investor wealth within the first five minutes of trade.
Here Are Key Reasons Behind The Stock Market Rally On June 24
Ceasefire Between Iran and Israel
Equity markets surged after reports confirmed that Iran and Israel had agreed to a phased ceasefire, following nearly two weeks of escalating military tensions. The announcement came from U.S. President Donald Trump, who credited Qatar for mediating the negotiations.
Despite the ceasefire, tensions on the ground persisted. Early Tuesday, the Israeli military reported detecting another wave of missiles launched from Iran. Sirens were activated across multiple cities, including Jerusalem, where residents took shelter in underground parking facilities after receiving mobile alerts.
The Israel Defense Forces (IDF) confirmed these alerts via social media, while AP reported that citizens received advance notifications ahead of the expected missile strike.
Oil Prices Decline Further
Crude oil prices fell over 3 per cent on Tuesday, extending Monday’s steep 9% drop. The latest decline came after Iran’s limited retaliation against a US base signaled a possible de-escalation in the conflict.
With reduced risk to the vital Strait of Hormuz oil route, US crude futures slipped 3.4% to $66.15 per barrel—their lowest level since June 11.
On Monday, oil had tumbled nearly 6 per cent after Iran fired missiles at a US air base in Qatar, responding to American airstrikes on Iranian nuclear facilities.
For India, a net oil importer, falling crude prices are a positive. Lower energy costs help contain inflation, reduce the fiscal deficit, and provide relief to consumers and policymakers alike.
Global Markets Cheer Ceasefire
Indian equities opened with sharp gains, in line with a global market rally as investors welcomed the ceasefire. President Trump, in a post on Truth Social, declared that the ceasefire would take effect within 12 hours and proclaimed the war “ended.”
In Asia, the MSCI Asia-Pacific index (excluding Japan) jumped 1.8 per cent. Japan’s Nikkei gained 1.4 per cent, China’s blue-chip index rose 1 per cent, and Hong Kong’s Hang Seng climbed 1.7 per cent.
Investors Shift from Safe Havens to Equities
With geopolitical risk easing, investors rotated out of safe-haven assets and into equities. Gold prices on the MCX dropped over 1 per cent in morning trade, while the dollar index slipped about 0.5 per cent.
Rupee Strengthens
The Indian rupee appreciated 65 paise to 86.13 per dollar in early trade on Tuesday, buoyed by the sharp decline in crude oil prices. A stronger rupee supports positive sentiment as it can attract foreign capital and help control inflation.
Focus Returns to Fundamentals
As tensions in West Asia ease, investors are once again focusing on domestic fundamentals. India’s robust economic outlook, increasing retail investor participation, and expectations of strong corporate earnings are reinforcing the bullish medium- to long-term view on equities.
Market experts believe that, if geopolitical risks remain subdued and earnings continue to grow, Indian equities could deliver double-digit returns in 2025.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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