Indian Markets Poised for Strong Opening as Trump Announces Iran-Israel Ceasefire
As of 8:23 AM, the GIFT Nifty was trading at 25,257, up 203 points, indicating a gap-up start with the Nifty reclaiming the 25,000 mark.
Market Update at 8:30 AM- Indian markets are set to open higher on Tuesday, June 24, after U.S. President Donald Trump announced a ceasefire agreement between Iran and Israel. The news has improved global risk sentiment and triggered a rally across Asian markets.
As of 8:30 AM, the GIFT Nifty was trading at 25,255, up 205 points, indicating a gap-up start with the Nifty reclaiming the 25,000 mark.
On Monday, markets declined sharply as geopolitical tensions escalated. The Nifty 50 fell 0.56 per cent to close at 24,971.90, while the Sensex dropped 0.62 per cent to 81,896.79, weighed down by U.S. strikes on Iranian nuclear sites and rising crude oil prices.
However, sentiment reversed after Trump’s announcement that the ceasefire would be phased in over 24 hours, potentially ending hostilities. While Iran and Israel have not officially responded, the development has calmed fears of further escalation.
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Foreign Institutional Investors (FIIs) turned net sellers on Monday, offloading equities worth Rs 1,874.38 crore. On the other hand, Domestic Institutional Investors (DIIs) stepped in as strong buyers, investing Rs 5,591.77 crore during the same session.
Asian markets opened in the green on Tuesday, reacting positively to the ceasefire announcement between Iran and Israel.
Crude oil prices tumbled sharply. Brent crude fell 3.76 per cent to USD 68.79 per barrel, while West Texas Intermediate (WTI) dropped 3.94 per cent to USD 65.46, as concerns over supply disruptions eased.
Gold prices also softened, declining 0.6 per cent to USD 3,348 in early trade, reflecting reduced safe-haven demand.
The U.S. dollar weakened, with the Dollar Index slipping to 98.19, as improving sentiment fueled a risk-on rally across global markets.