India’s Stock Market Climbs Amid Ceasefire Optimism and Falling Oil Prices

India’s equity markets opened stronger on June 24, 2025, as investor confidence grew following a ceasefire agreement between Iran and Israel, which also led to a drop in global oil prices. The Nifty 50 index rose by 1.03% to 25,229.5 points, while the BSE Sensex gained 1.06% to reach 82,764.34 by 9:17 a.m. IST. This upward movement aligned with gains across Asian markets, reflecting a broader sense of relief in the region.

The ceasefire, announced by U.S. President Donald Trump, ended a 12-day conflict that had heightened fears of regional instability and driven oil prices to a five-month peak. With oil prices now at a one-week low, India, a major oil importer, stands to benefit from reduced import costs, easing pressure on inflation and the fiscal deficit. Sectors like oil marketing and airlines saw significant gains, with companies such as Indian Oil Corporation and Bharat Petroleum Corporation rising 2.9% and 3.1%, respectively. Adani Ports, which operates Haifa port in Israel, surged 4%, leading the benchmark index.

Despite the early rally, some posts on X noted that markets later moderated gains due to reports of potential ceasefire violations, with the Sensex closing up 158 points at 82,055 and the Nifty up 72 points at 25,044. Analysts suggest that India’s market outlook remains tied to global factors, including U.S. trade policies and tariff developments. Mid-cap and small-cap stocks also advanced, each adding about 0.9%, signaling broad-based optimism.

The Indian rupee strengthened, climbing 0.9% to 85.9750 against the U.S. dollar, its best single-day gain in a month, supported by lower oil prices and a weaker dollar. S&P Global Ratings recently raised India’s FY2025 growth forecast to 6.5%, with inflation expected to ease to 4%, reinforcing positive sentiment for India’s economic trajectory.

This market upswing highlights India’s resilience amid global uncertainties, though investors remain cautious about geopolitical and trade-related risks.

Published in SouthAsianDesk, June 24th, 2025

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