Sensex Soars 1000 Points After Iran-Israel Ceasefire, Market Adds ₹4.5 Lakh Crore in Wealth

Business News: The Indian stock market witnessed a powerful surge on Tuesday, as global geopolitical tensions eased and domestic economic signals turned favorable. This upward momentum came after a mixed trading session on Monday and was driven by four key triggers: a ceasefire between Iran and Israel, a sharp drop in crude oil prices, aggressive buying by foreign investors, and supportive regulatory moves from the Reserve Bank of India (RBI).

The BSE Sensex jumped over 1000 points, closing near 82,900, while the Nifty rallied 300 points to settle above 25,280. This sharp rally added approximately ₹4.5 lakh crore to the total market capitalization, bringing cheer to investors across the board.

Broad-Based Rally: All Major Sectors in the Green

29 out of 30 Sensex stocks closed in the green, showcasing widespread bullish sentiment.

• Adani Ports led the gains with a sharp 4% jump.
• Other major gainers included UltraTech Cement, Tata Steel, Mahindra & Mahindra, and HDFC Bank, each rising between 1% and 3%.
• Minor losses were recorded in stocks like NTPC, BEL, and Trent.
• On the Nifty, 45 out of 50 stocks ended higher. Sectorally:
• Nifty PSU Bank Index surged 2.38%, leading the pack.
• Metal gained 2.03%, followed by Auto (1.66%), Realty (1.19%), IT (1.14%), and Consumer Durables (1.18%) — all ending with robust gains.

What Sparked the Rally? Four Key Global & Domestic Factors

1. Geopolitical Easing: Iran-Israel Ceasefire
At around 3:30 AM IST, U.S. President Donald Trump confirmed a ceasefire agreement between Iran and Israel. This unexpected development boosted investor confidence, easing fears of wider conflict in the Middle East and reducing volatility in global markets.

2. Crude Oil Prices Fall
After a prolonged period of inflationary pressure, crude oil prices dropped nearly 2%, with WTI crude at $67.13 and Brent crude at $67.17 per barrel. For India, a major oil importer, this is a welcome relief, as it is expected to ease import bills and inflationary pressure.

3. Strong Foreign Investor Inflows
On June 23, Foreign Institutional Investors (FIIs) purchased ₹5,591.77 crore worth of Indian equities, marking one of the largest single-day inflows in June so far. This reflects growing global confidence in India’s economic resilience and market potential.

4. RBI’s Regulatory Relaxation on Infrastructure Financing
The Reserve Bank of India (RBI) has eased provisioning norms for infrastructure lending by banks and NBFCs, thereby enhancing their liquidity and lending capacity. This move triggered a sharp rally in banking and financial stocks, providing strong support to benchmark indices.

Will This Rally Sustain? Here’s What Analysts Say

Market experts are referring to this uptrend as a "relief rally", primarily driven by external factors. However, they caution that long-term sustainability of this momentum will depend on several variables including:

• The permanence of the Iran-Israel ceasefire
• Continued moderation in crude oil prices
• Clarity on U.S. Fed policy regarding interest rates
• Domestic factors such as inflation trends and corporate earnings growth

Investor Outlook: Golden Opportunity or Time for Caution?

While the rally has certainly lifted market sentiment, experts advise measured optimism. Investors, particularly those with a long-term horizon, are encouraged to adopt a strategy-driven approach and focus on fundamentally strong stocks rather than following short-term market euphoria. In volatile global conditions, caution combined with opportunity awareness could prove to be the most profitable approach.