Indian stock exchanges witnessed a strong rally in early trading on June 26, 2025, driven by optimism surrounding a ceasefire agreement between Iran and Israel. The BSE Sensex, a key stock exchange index, climbed 415.98 points to 83,171.49, while the NSE Nifty rose 115.50 points to 25,359.45. This marked the third consecutive day of gains for both indices, reflecting a broader positive sentiment in global markets.
The ceasefire, announced by U.S. President Donald Trump, has eased geopolitical tensions in the Middle East, boosting investor confidence. Posts on X highlighted a similar upbeat mood, with traders noting a “risk-on” rally across global stock exchanges, including a 1% rise in the S&P 500 and a 0.9% increase in the Dow Jones. However, some analysts cautioned that the rally’s sustainability remains uncertain due to unresolved trade tariff issues.
Among the top performers on the Sensex were Bharat Electronics Ltd, Tata Steel, Bharti Airtel, Bajaj Finance, and Adani Ports, driving the stock exchange upward. In contrast, Tech Mahindra, Kotak Mahindra Bank, State Bank of India, and Tata Consultancy Services lagged behind. The decline in crude oil prices, with Brent crude falling to around $68 per barrel, further supported market gains, particularly for oil-import-dependent India.
The rupee also strengthened, gaining 13 paise to 85.92 against the U.S. dollar, bolstered by the positive stock exchange performance and improved global risk sentiment. Despite the optimism, analysts warn that any violation of the ceasefire could dampen market momentum, as seen in earlier fluctuations when reports of missile strikes surfaced.
Published in SouthAsianDesk, June 26th, 2025
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