Mumbai, June 24 The Indian stock market witnessed a sharp surge on Tuesday, with the Sensex soaring more than 1,000 points in early trade, while the Nifty reclaimed the 25,250 mark.
A sudden easing of geopolitical tensions in the Middle East and a steep drop in crude oil prices sparked a wave of buying across sectors, lifting overall market sentiment.
The Sensex opened at 82,534.61, higher than its previous close of 81,896.79, and rallied over 1 per cent to hit an intra-day high of 82,937.
The Nifty, too, opened strong at 25,179.90, up from 24,971.90, and touched a high of 25,287.65.
Broader markets joined the rally, with the BSE Midcap and Smallcap indices climbing over 1 per cent.
The upbeat mood was reflected in market capitalisation as well, with the total value of BSE-listed companies rising by nearly Rs 5 lakh crore in the first few minutes of trading -- from Rs 448 lakh crore to almost Rs 453 lakh crore.
Market experts attributed the sudden rally to the announcement of a ceasefire between Israel and Iran.
US President Donald Trump shared on his Truth Social platform that both nations had agreed to a complete halt in hostilities after 12 days of conflict.
His announcement boosted investor confidence across global markets. The ceasefire also triggered a sharp fall in crude oil prices -- Brent Crude, which hovered near $80 per barrel in the previous session, crashed nearly 3 per cent to trade below $70.
This decline came as a relief to Indian investors, since lower crude prices help reduce inflationary pressures and support growth in an oil-import-dependent economy like India.
With tensions easing, global investors moved away from safe-haven assets such as gold and the US dollar and shifted back to equities.
In India, this shift helped the stock market recover from recent losses and led to broad-based buying across sectors.
MCX Gold prices fell over 1 per cent in morning trade, and the dollar index also declined by nearly half a per cent.
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