In a strong comeback, Indian stock markets witnessed a sharp surge on Tuesday, buoyed by positive global cues and a significant drop in crude oil prices. The Sensex jumped 737 points to close at 82,634.24, while the Nifty soared 227 points to settle at 25,199.10, both registering gains of nearly 0.9%.
The primary trigger behind this rally was news of a possible ceasefire between Israel and Iran, bringing a sense of relief to global markets that had been jittery over escalating tensions in the Middle East.
Global Optimism Drives Market Sentiment
Markets across the world reacted positively after former US President Donald Trump announced via his social media platform that a ceasefire between Israel and Iran was set to begin within 12 hours. This announcement is being viewed as a major turning point in easing the 12-day-long conflict that had sent shockwaves through equity and commodity markets.
“The ceasefire report brought immediate relief to investors, calming fears of supply disruptions and inflationary risks.”
As a result, crude oil prices witnessed a sharp fall, further fueling investor confidence and contributing to the upward movement in equity indices.
Top Gainers: Adani Group Stocks Lead the Rally
The rally was broad-based with several frontline stocks witnessing impressive gains. Among the top performers were:
Adani Ports and Special Economic Zone
Jio Financial Services
Shriram Finance
UltraTech Cement
Adani Enterprises
These stocks climbed up to 5%, reflecting strong buying interest, especially in companies with exposure to infrastructure, finance, and logistics.
What Boosted the Markets Today?
Here are the key reasons behind Tuesday’s market rally:
Israel-Iran Ceasefire Announcement:
The announcement from Trump signaled the end of a tense 12-day conflict, boosting investor sentiment and encouraging global fund inflows into equities.Drop in Crude Oil Prices:
The decline in oil prices brought hope of reduced inflationary pressure, which is a positive for emerging markets like India that rely on oil imports.Positive Global Cues:
Global markets mirrored the same optimism, creating a favorable backdrop for Indian indices to rebound strongly.
Investor Outlook
With geopolitical tensions appearing to ease and global markets stabilizing, investors found comfort in returning to riskier assets like equities. Experts believe if the ceasefire holds and crude remains subdued, the rally could continue in the short term.
“Markets are breathing a sigh of relief, and for now, the bulls are back in charge,” said a trader tracking the developments.
Conclusion
Tuesday’s market performance showcases how quickly geopolitical developments can swing market sentiment. With the Sensex nearing 83,000 and Nifty above 25,200, investor focus will now shift to upcoming domestic and global economic data, while keeping a close eye on developments in West Asia.
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