Ceasefire News Lifts the Sentiment: Indian Markets Set to Start on a Buoyant Note; Nifty Likely to Open Over 200 Points Gap-Up as Trump Announces Iran-Israel Truce
On Tuesday, June 24, Nifty 50 and Sensex are likely to open up, after reports emerged that the United States president Donald Trump announced that Iran and Israel have agreed to a ceasefire.
As of 8:01 AM, the GIFT Nifty was trading at 25,260 up by 282 points from its previous close. This indicates that Indian markets are set to open with a significant gap-up.
Asian markets rose on Tuesday after U.S. President Donald Trump shared that Iran and Israel have agreed to a ceasefire. Meanwhile, WTI oil futures dropped to $66.50 per barrel, suggesting that markets are now factoring in a possible de-escalation of the Middle East conflict.
Regarding the institutional flow, the both FIIs and DIIs have remained net buyers month till date. However, FIIs were net sellers on Monday.
On Monday, June 23, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹1,874.38. On the other hand, Domestic Institutional Investors (DIIs), turned net buyers to the tune of ₹5,591.77 crore crore during the same session.
U.S. President Donald Trump announced on Tuesday that a ceasefire had been reached between Israel and Iran, stating on Truth Social that the agreement would be implemented over the next 24 hours and mark an "official end" to the war. Neither Iran nor Israel immediately responded to the announcement.
The news follows heightened tensions after reports of Iran launched a missile attack on a U.S. airbase in Qatar late Monday, in retaliation for American airstrikes on its nuclear facilities at Isfahan, Fordow, and Natanz the day before.
The targeted base, Al Udeid Air Base, is a key U.S. military hub in the region and is also located near Qatar Airways' headquarters.
On Monday, the Indian stock market closed in the red, with the Nifty 50 declining by 0.56% or 140.5 points closing at the 24,971.90 mark. Similarly, the Sensex also declined by 0.62% or 511.38 points, to close the day at 81,896.79.
Asian peers rose on Tuesday after the United States president Donald Trump announced that Iran and Israel have agreed to a ceasefire.
Oil prices fell to a one-week low as markets reacted to the ceasefire news, easing concerns about supply disruptions. Brent crude futures dropped 3.76% to $68.79 per barrel, while U.S. West Texas Intermediate (WTI) declined 3.94% to $65.46. The announcement led to a sharp unwinding of the risk premium in crude markets, driven by growing optimism that tensions in the Middle East may ease.
Gold prices have eased in early trade on Tuesday. At the time of writing, gold price was down by 0.6% at $3,348.
The U.S. dollar weakened as indicated by the dollar index which declined to 98.19 on Tuesday after President Donald Trump announced a ceasefire between Israel and Iran, boosting investor sentiment and triggering a broad-based risk rally across global markets.
Disclaimer: The article is for informational purposes only and not investment advice.
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