Sensex, Nifty Rally On Ceasefire Hopes, But Middle East Tensions Spark Late Volatility
Domestic equity benchmarks Sensex and Nifty saw mixed movement on Tuesday, as fresh geopolitical tensions in the Middle East resurfaced, unsettling investor sentiment during the afternoon session. Approaching the closing bell, both indices erased most of their gains made in the session, but managed to end in green.
The BSE Sensex ended trading at 82,055, clocking a gain of more than 150 points, while the NSE Nifty50 settled the session at 25,075.55, climbing a little over 100 points. On the 30-share Sensex, Adani Ports, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, and L&T stood among the gainers. Meanwhile, the laggards were dominated by PowerGrid, Trent, Maruti, HCL Tech, and NTPC.
In the broader markets, the Nifty Midcap Select drove the gains and settled 0.88 per cent higher. Sectorally, the PSU Bank and Metal indices made a mark and jumped 1.46 per cent and 1.01 per cent by the session end. On the other hand, the Media index dragged 1.12 per cent.
Israel-Iran Ceasfire Violations
The latest developments came after Israeli Defence Minister Israel Katz confirmed that he had instructed the Israel Defense Forces to launch major strikes on strategic regime locations in central Tehran.
The move followed what Katz described as a serious breach of the ceasefire agreement by Iran. “In light of the severe violation of the ceasefire carried out by the Iranian regime, we will respond with force," stated Chief of the General Staff, Lt. Gen. Eyal Zamir, while providing an update on the escalating situation.
Notably, the indices enjoyed a great rally throughout the session after US President Donald Trump announced a ceasefire agreement between Israel and Iran. While the Sensex surged over 1 per cent to hit an intra-day high of 82,937, the Nifty jumped in the session and reached 25,288. In the energy markets, crude prices saw a sharp downturn on Tuesday, with Brent crude futures declining 5.3 per cent, marking the lowest levels in two weeks.
This breakdown in oil prices was a result of markets reacting to the ceasefire agreement, as investors' concerns were temporarily eased regarding any further supply disruptions in the Middle East.
Also Read : Brent Crude Dives To Two-Week Low, Lifting Indian Energy, Aviation, And Paint Shares
Markets In Previous Trading Session
Ahead of Tuesday’s developments, Indian markets had opened strongly on Monday, buoyed by an initial wave of optimism driven by expectations that Middle East tensions were beginning to ease. However, the optimism proved short-lived as geopolitical headlines once again weighed on sentiment. By the close of Monday’s trading session, both indices had reversed much of their early gains. The Sensex dropped 511.38 points or 0.62 per cent to end at 81,896.79, while the Nifty 50 slipped 140.50 points or 0.56 per cent to settle at 24,971.90, falling below the crucial 25,000 level.
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