Nifty, Sensex Set for Gap-Up Opening as Israel-Iran Ceasefire Ease Tension on Global Sentiment

On June 24, FIIs sold equities worth Rs 5,266.01 crore, while DIIs bought stocks amounting to Rs 5,209.60 crore.

Pre-Market Update at 8:00 AM: Indian stock markets are expected to open on a positive note on Wednesday, June 25, following encouraging signals from global peers. The optimism stems from the announcement of a ceasefire between Israel and Iran, which has brought temporary relief to geopolitical tensions in the Middle East.

At 7:29 AM, the GIFT Nifty was trading around the 25,179 level, reflecting a rise of 101 points from its previous close. This points toward a gap-up start for domestic indices. Asian equities also edged higher, taking cues from the U.S. market, where all major indices surged over 1 per cent in the previous session.

On the institutional front, domestic investors (DIIs) continued to support the market with net purchases for the past two sessions. In contrast, foreign investors (FIIs) remained net sellers. On June 24, FIIs sold equities worth Rs 5,266.01 crore, while DIIs bought stocks amounting to Rs 5,209.60 crore.

After 12 days of hostilities, Israel and Iran have agreed to halt military actions. The conflict had intensified with U.S. involvement, as President Donald Trump ordered strikes on Iran's nuclear sites. While Israel's Prime Minister Benjamin Netanyahu referred to the ceasefire as a major win, U.S. intelligence indicated that the strikes only delayed Iran’s nuclear plans by a few months.

Despite opening strong, Indian indices faced selling pressure later in the session. The Sensex fell sharply by over 1,100 points from the day’s peak, hitting a low of 81,900.12 before rebounding to close 158 points higher at 82,055.11. The Nifty 50 also slipped below the 25,050 level but managed to end with a 72-point gain at 25,044.35.

Markets in Asia opened with caution, as investors digested the ceasefire news and comments from U.S. Federal Reserve Chair Jerome Powell, who adopted a balanced tone on interest rate policy.

On Tuesday, U.S. markets closed with strong gains amid reduced geopolitical concerns. The Dow Jones rose by 1.19 per cent, the S&P 500 by 1.11 per cent, and the Nasdaq climbed 1.43 per cent. Powell's congressional testimony highlighted the possibility of a temporary rise in inflation due to new tariffs but indicated that the Fed is not in a rush to cut rates.

Crude oil prices inched higher, with Brent crude at USD 67.87 per barrel (up 1.09 per cent) and WTI at USD 65.16 per barrel (up 1.23 per cent), as traders assessed the stability of the ceasefire.

Gold prices were steady, with spot gold at USD 3,326.39 per ounce and U.S. gold futures up 0.2 per cent at USD 3,340. The demand for gold remained muted as safe-haven buying subsided.

The U.S. dollar weakened slightly amid the improved risk appetite, with the dollar index easing to 97.91. Meanwhile, bond yields declined, with the two-year U.S. Treasury yield dropping to 3.7870 per cent—a six-week low—and the 10-year yield flat at 4.3043 per cent.

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Disclaimer: The article is for informational purposes only and not investment advice.